Bitcoin surged beyond $63,000 on Wednesday, marking its highest level in over two years, fuelled by a wave of investment into new U.S. spot bitcoin exchange-traded products.
This rally, witnessing a remarkable 42% increase this month, is shaping up to be its most significant monthly gain since December 2020.
However, the excitement was short-lived as Bitcoin unexpectedly experienced a drop, stabilizing at $61,650 during Asia’s morning trading session. This upward momentum in the most traded cryptocurrency’s value also lifted Ether to $3,416, reflecting a substantial 50% surge in February.
Veteran trader Peter Brandt, sharing insights on Twitter, suggested that Bitcoin’s recent surge beyond the upper boundary of a 15-month channel could indicate a target of $200,000 for the current bull market cycle, up from the previous estimate of $120,000. Brandt, known for his analysis of Bitcoin’s price trends, occasionally expresses bullish sentiments.
Similarly, the CEO of Bitwise Asset Management anticipates Bitcoin’s price to reach $250,000 sooner than expected, predicting Bitcoin’s encroachment into gold’s market share to be faster than anticipated.
Investors are increasingly drawn to Bitcoin as April’s halving event approaches. This event is intended to slow down the rate at which new bitcoins are created, Reuters reported.
Furthermore, there is growing interest among investors due to the possibility of the Federal Reserve implementing multiple interest rate cuts throughout the year. This has prompted investors to explore higher-yielding or more volatile assets as potential investment opportunities.