Bitcoin ETFs Achieve Record Trading Volume, Bitcoin Price Hits $57,000
Over the past 24 hours, the price of BTC has surged nearly $5,500, driven by Bitcoin spot ETFs.
Bitcoin ETFs Achieve Record Trading Volume, Bitcoin Price Hits $57,000
Since the evening of February 26th, the price of Bitcoin (BTC), the world's largest cryptocurrency, has regained momentum following several days of low volatility, surging past the $53,000 mark before continuing its rally to $57,000 on the morning of February 27th.
This marks the highest price level for BTC since late November 2021, just two weeks after reaching its all-time high of $69,000.
4-hour chart of BTC/USDT pair on Binance at 09:20 AM on February 27th, 2024
The resurgence in BTC price is once again attributed to Bitcoin spot ETFs - investment products for Wall Street giants approved by the SEC in mid-January.
Specifically, according to statistics from Bloomberg analyst Eric Balchunas, 9 new Bitcoin spot ETFs (excluding Grayscale's GBTC) launched on February 26th (US time) recorded a trading volume exceeding $2.4 billion, surpassing the previous volume record set on January 11th. This underscores ongoing institutional demand for BTC. BlackRock's IBIT ETF led with trading volumes reaching $1.3 billion.
It's official..the New Nine Bitcoin ETFs have broken all time volume record today with $2.4b, just barely beating Day One but about double their recent daily average. $IBIT went wild accounting for $1.3b of it, breaking its record by about 30%. pic.twitter.com/MiCs1rzttM
— Eric Balchunas (@EricBalchunas) February 26, 2024
As of February 23rd, Bitcoin spot ETFs recorded net inflows of 5,668 BTC, despite significant selling pressure from Grayscale. These ETFs now collectively hold over 287,000 BTC just over a month after trading began.
Also on the evening of February 26th, MicroStrategy announced the purchase of an additional 3,000 BTC at a cost of over $155 million, increasing their holdings to 193,000 Bitcoin.
All these movements indicate a highly optimistic short-term outlook for the BTC market, especially with the halving event approaching in mid-April.
Thanks to Bitcoin's growth, many other major altcoins in the market have also seen movements ranging from 2% to 5% over the past 24 hours. ETH has also reached a new high of $3,196, its highest level in nearly 2 years.
4-hour chart of ETH/USDT pair on Binance at 09:20 AM on February 27th, 2024
In the past 12 hours, $294 million worth of derivative orders have been liquidated in the market, with BTC dominating the majority. The ratio of burned short orders accounted for nearly 82% of these liquidations.
Market liquidation statistics in cryptocurrency derivatives, screenshot from CoinGlass at 08:35 AM on February 27th, 2024.
