Just 7% separated Bitcoin from its all-time high, which was set in November 2021, as the price of the cryptocurrency surged above $64,000 on Monday morning in Asia.
Bitcoin, the largest cryptocurrency in the world by market capitalization, was up 2.78% over the previous day to trade at about $63,600. The market capitalization of bitcoin was $1.25 trillion. The price of Bitcoin has increased by more than 50% so far this year.
For the first time since December 2021, Bitcoin prices surpassed the legendary $63,000 price barrier on March 1.
Other cryptocurrencies included XRP up 0.57% to $0.639, Tether up 0.02% to $1, Solana down 0.83% to $129.03, and Ethereum up 1.5% at $3,476.97. In the meantime, the market capitalization of all cryptocurrencies has surpassed $2.5 trillion.
The recent approval and introduction of spot Bitcoin exchange-traded funds (ETFs) in the US earlier this year, which drew significant investments and sparked enthusiasm in the cryptocurrency market, is what spurred the recent price surge in Bitcoin.
The ten biggest spot Bitcoin ETFs received $420 million on February 27 alone, according to LSEG data, which is the largest inflow in nearly two weeks.
A further reason for the increase in bitcoin prices was the impending April halving event. Every four years, there is a reduction in the number of tokens released by Bitcoin, known as “halving,” which also results in lower mining rewards for participants.
The fact that 19 of the 21 million bitcoins that will be available for mining have already been mined adds to the general bullish sentiment.
More than 300,000 Bitcoin, or seven times the total number of new coins mined since January 11, are present in the nine new spot ETFs. The quantity of new coins mined every day will drop from 900 to 450 following the halving.
According to cryptocurrency platform CoinGecko, the total value of all bitcoin in circulation crossed $2 trillion this month for the first time in the previous two years.