Bitcoin’s rally continues as the cryptocurrency tops $60,000 and sees its biggest monthly gain since 2020 | Financial markets

All things under the sun have their time. Market forces seem to confirm that the end of crypto winter has arrived, with the price of Bitcoin soaring to $60,000. The major digital currency rose 6% on Wednesday and thus reached levels not seen since November 2021. The growth recorded by this asset reaches 42% since the beginning of February, which is the best monthly performance since 2020.

“The factors driving price today are very different from those in 2021, and we don’t expect them to change,” says Eric Demuth, co-founder and CEO of the Bitpanda platform. The executive notes that, unlike what happened at the end of 2020, the new rally is supported by increased confidence and secure access to digital assets, especially from US institutional investors. Industry downturn, especially after the FTX crisis, sanctions against Binance and the collapse of TerraLuna.

“This new rally is even more impressive in light of statements from major central banks that indicate they intend to keep rates high for longer,” said Michael Safai, co-founder of Dexterity Capital. For its part, eToro notes that investors are anticipating possible changes in monetary policy starting in June, so this is an early buy.

The upcoming reduction in the supply of Bitcoin, a process known as halving, supports optimistic moods. Investor confidence also affects other cryptocurrencies. The top 30 links recorded an increase of 2.8% over the last 24 hours. Additionally, it influences other, lesser-known options that also provide benefits. “If Bitcoin hovers above $50,000, we could see big moves in altcoins to growth due to the principles of capital flow within the cryptocurrency space,” commented Matteo Taronna, analyst exchange Bitget.

The renewed interest in Bitcoin has left another clear winner: exchange-traded funds approved earlier in the year. The BlackRock-managed fund recorded its biggest daily inflow yesterday, bringing in more than $520 million, four times more than the day before, according to consultancy BitMex. The firm notes that despite jitters in the first few days, 11 SEC-approved investment firms have raised at least $6.7 billion since Jan. 11, the date they began trading.

“We are seeing the effect of ETFs sooner than expected,” Joseph Edwards, head of research at Enigma Securities, said in a research note. Edwards said the new data will force investment advisers to “quickly sell” these exchange-traded funds to their clients.

For their part, listed companies most exposed to Bitcoin changes are also recording positive performance. MicroStrategy, which originally focused on business management software in the cloud but with a strong focus on accumulating crypto assets, posted nearly 10% growth before Wall Street opened. For their part, the names The Coinbase exchange rose by more than 5% in anticipation of the start of the session.

Top industry leaders insist this is not an isolated incident. “This time it is no longer a matter of fashion or the frenzy of the ball, but rather the price is being pushed by increased demand,” adds Demuth. At the same time, this expert notes, a “clearer” regulatory framework following the adoption of a new community order last April is helping to consolidate the sector and prevent the re-building of a giant with feet of clay.

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