This Month In Crypto: Bitcoin’s Remarkable Rally

Bitcoin’s rapid ascent continues to captivate investors as it surges higher. The introduction of spot Bitcoin exchange-traded funds (ETFs) last month has ignited a flurry of activity and investor interest. Nine new ETFs have rapidly amassed a staggering 300,000 Bitcoin valued at AU$26 billion in under two months, propelling Bitcoin to a new two-year high in USD and all-time high in AUD.

Interestingly, while leading gold ETFs witnessed AU$3.7 billion outflows in 2024 amid declining spot gold prices, Bitcoin-tracking ETFs experienced significant growth, contrasting the two investment avenues.

The momentum behind Bitcoin ETFs continues to gain steam, with trading volumes reaching unprecedented levels. On February 28th alone, these ETFs saw a staggering AU$11.8 billion in trading volume, more than doubling their previous high. This surge in trading activity highlights the growing interest in Bitcoin as a legitimate and investable asset, with ETFs providing investors with regulated and accessible avenues to gain exposure to the cryptocurrency market.

As a result of Bitcoin’s meteoric rise, it has culminated in yet another historic milestone: its total market value crossing the US$1 trillion (AU$1.5 trillion). With its circulating supply nearing 94% of the hard-capped 21 million BTC, Bitcoin’s dominance in the digital currency landscape remains unparalleled. This achievement underscores Bitcoin’s status as a premier store of value and a hedge against inflation.

Bitcoin’s price rally shows no signs of slowing down as it breaches the AU$97,000 mark. Bitcoin has set new records against multiple fiat currencies, including the AUD.

Looking ahead, Bitcoin’s future is bright with the upcoming halving event in April. The event, reducing new coin issuance and emphasizing scarcity, historically triggers bullish price rallies. Coupled with growing institutional adoption and mainstream acceptance, Bitcoin’s decentralized nature and limited supply position it as a sought-after asset. As investors seek alternatives to traditional fiat currencies, Bitcoin stands to benefit, solidifying its status as digital gold.

More news stories circulating the block:

• AI tokens surge with double-digit gains as market cap doubles in a month, fuelled by Nvidia’s earnings and sustained positive trajectory.
• GoFundMe halts Tornado Cash legal defence fundraiser, citing terms of service breach. Contributions refunded.
• Coinbase users experienced a zero-balance bug whilst bitcoin is flirting with new all time highs.
• Reddit converts excess cash into Bitcoin and Ethereum, experimenting with Ether and MATIC for virtual goods sales.
• Former US President Trump shifts stance on Bitcoin, no longer anti-BTC, acknowledges its demand, sparking speculation on election-related motives to attract crypto-focused voters.
• Do Kwon, Terraform Labs co-founder, to be extradited to the US from Montenegro, following arrest in March 2023, facing fraud charges.
• BitForex, a Hong Kong-based exchange, suspends withdrawals for at least three days without explanation, leaving users unable to access funds after significant withdrawals.
• FTX creditors file lawsuit against law firm Sullivan & Cromwell for alleged involvement in FTX Group’s fraud, seeking damages in class-action lawsuit.
• Galaxy Digital research suggests 20% of Bitcoin’s hash rate may go offline post-halving in April, as older mining rigs struggle to break even with reduced block rewards.
• Crypto Fear and Greed Index hits highest level since Bitcoin’s previous all time high in mid-November 2021, signalling heightened market sentiment.
• Pudgy Penguins NFTs briefly surpass Bored Ape Yacht Club NFTs in floor price.

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