Bitcoin Closes Out The Most Positive Month Since 2020, Topping $61,000

(CTN News) – The price of bitcoin and ether rose on Thursday as they look set to have their strongest month in more than three years.

During the final day of February, Bitcoin gained more than 1% to $61,150.88, according to Coin Metrics. At one point on Wednesday, it surged to $64,000 before a wave of long liquidations triggered a pullback to about $60,000. The price of Ethereum increased by 3% to $3,382.43 on Thursday.

Following a flat month in January, both coins rose in February. As of today, Bitcoin is up 42% for the month, marking its sixth consecutive month of gains – its strongest showing since December 2020.

The price of Ether has increased by more than 47%, marking its sixth consecutive month of gains and its best month since July 2022.

The month of November was a triumph for exchange-traded funds, which saw a record $677 million in daily net inflows on Wednesday alone. This is the third consecutive day with inflows surpassing $500 million.

A number of factors contributed to the decrease in the price of bitcoin, including outflows from the Grayscale Bitcoin ETF (GBTC), which had an advantage over its rivals because it operated as the Grayscale Trust before being changed into the Grayscale ETF. As a result, those outflows have decreased.

As a result of supply and demand dynamics, investors attribute February’s explosive gains to supply and demand. In particular, Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs, referred to the new ETFs and the upcoming halving of bitcoin.

There have been over $2 billion inflows into ETFs so there has been a need to access more supply to build these ETFs, which results in rising prices, particularly in the short term.

It is also possible that you have gained some extra momentum in the price over the last few days as a result of the upcoming halving, she explained. There has been a historical correlation between halving and bitcoin prices increasing … past performance is not indicative of future results, but I believe the halving process will result in the same level of price appreciation.”

It is mandated by the Bitcoin code to cut the reward for mining in half every few years in order to reduce the supply of bitcoin and create a scarcity effect. This year’s event is expected to take place in April.

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