itcoin has been on a spectacular run in recent days, breaking past the major psychological level of $60,000 to trade at heights not seen since its all-time high peak in November 2021. In the span of just 3 days starting February 26th, 2024, the largest cryptocurrency by market cap surged by a staggering 20% from $51,500 to breach $60k.
At the time of writing, Bitcoin is trading hands at $60,324, having retreated slightly from hitting an intraday high of $60,807 earlier today. However, its upward momentum remains unchecked, and the bulls seem firmly in control. More importantly, this latest explosive move has brought Bitcoin tantalizingly close to recording its highest-ever monthly closure.
A New Monthly Record In Sight
As historical data shows, Bitcoin has only closed above the $60,000 mark once before - in October 2021 when it ended the month at $61,293. With less than 2 full trading days left in February 2024, Bitcoin is currently just 1.94% or $1,193 away from bettering that previous record.
Should the bull run extend over the next 36 hours, Bitcoin would achieve the milestone of registering its highest monthly close in history. Considering its parabolic price action over the past week, marking a new all-time closure high is looking increasingly probable. The bulls have dominated proceedings and sent Bitcoin rocketing nearly 20% higher within a short span of just 3 days.
- Confluence Of Factors Driving The Rally
There are a few converging factors that analysts believe might be fueling Bitcoin's recent price surge. Firstly, the increased demand from physically-backed Bitcoin ETFs listed in the United States seems to be squeezing supply in the market. Over $300 million worth of BTC has been accumulated by ETF providers like ProShares in less than 50 trading sessions.
At the same time, on-chain data indicates accumulation by long-term holders popularly referred to as "smart money." This cohort has been buying the dips aggressively, and adding to their holdings as Bitcoin exchanges see record outflows. Rising institutional adoption, along with a BUY-and-HODL mindset among investors has likely created a perfect storm to catapult Bitcoin past $60k.
Will The Bulls Sustain Momentum Till Month-End?
With the crypto market now a more mature asset class, violent drawdowns or corrections are fairly uncommon following a prolonged surge. This is different from Bitcoin's historic bull runs where a parabolic move upwards was usually unsustainable. The current run-up powered by growing mainstream acceptance seems more durable.
As such, it will not come as a surprise if the bulls maintain their grip till the end of February to allow Bitcoin to achieve the new milestone of its highest ever monthly closure above $61k. From there, many analysts anticipate more all-time highs to be challenged shortly as adoption continues to broaden. Exciting times seem to lie ahead for the premier cryptocurrency as it starts to cement its status as ‘digital gold’.
The historic run seen over the past few days underscores Bitcoin's resilience and ability to deliver spectacular returns for long-term investors who buy into its disruptive technology story. As the world's first cryptocurrency approaches a new monthly all-time high, the bull party may just be getting started. Crypto enthusiasts and traders alike will be watching with bated breath to see if it can close in February 2024 by setting yet another landmark.
