Cryptocurrency prices rose on Thursday as Bitcoin and Ether head into a strong month.
Bitcoin rose more than 4% to $62,901.93 on the last day of February, according to Coin Metrics. It briefly soared to $64,000 on Wednesday, but fell to around $60,000 amid a prolonged wave of liquidations. On Thursday, Ether rose more than 6% to $3,483.33.
After finishing flat in January, the two coins rose further in February. Bitcoin rose 47% in the month. Ether has risen more than 50%.
Bitcoin year to date
It was a triumphant month for Bitcoin ETFs, with daily net inflows of $677 million on Wednesday alone, marking the third consecutive day of more than $500 million. Bitcoin prices were weighed down by outflows from the Grayscale Bitcoin ETF (GBTC), which was ahead of its rivals when it was originally operated as the Grayscale Bitcoin Trust. These outflows are now decreasing.
Investors attribute February’s explosive rally to Bitcoin’s supply and demand dynamics. Sylvia Jablonski, CEO and Chief Investment Officer of Defiance ETF, specifically pointed to the new ETF and the upcoming Bitcoin halving.
“We’ve seen over $2 billion flowing into various Bitcoin ETFs, so we need access to more Bitcoin supply to build these ETFs, and that’s especially true in the short term. “This will push up prices,” he said.
“The second reason why prices may have gained more momentum in recent days is the upcoming halving,” he added. “Historically, halvings have led to an increase in the price of Bitcoin. While past performance is not indicative of future performance, I think there is a belief that the halving process will result in the same level of price increase. Masu.”
Halving is an obligation in the Bitcoin code to cut reward mining Bitcoin in half every few years in order to reduce the supply of Bitcoin and create a scarcity effect. The next one is scheduled for April this year.
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