2024-03-01 13:14:07
Traders who followed Bitcoin BTC Price in February 2024 witnessed an extraordinary month. The largest cryptocurrency rose to almost a record high, and such a monthly increase has not been seen since December 2020. After such a monthly rise, a higher degree of volatility is inevitable due to the lack of liquidity, but at the same time, Bitcoin is “safe” up to $59,000.
An incredible monthly candle
Another month has come to an end, and CoinGlass published the monthly performance of Bitcoin on the first of March. Although the price of digital gold has not yet exceeded its previous peak of $69,000, it crossed $60,000 in the last days of the month and finally set a monthly peak of $64,000. Glassnode’s lead analyst, Checkmate, reported on X (formerly: Twitter) that Bitcoin had a 43.55% increase in February, which had not been seen in more than 3 years. Thanks to the unreal rise, Bitcoin’s market capitalization rose by $390 billion, and the nearly $20,000 candle has never been seen before.
Thanks to this, Bitcoin – and the entire cryptocurrency market – can boast a 7-month green streak, as the last time Bitcoin owners posted a loss from the beginning to the end of the month was in August 2023. In recent years, March has also been considered an extremely profitable month, Bitcoin has been profitable four times out of the last 5 years in March, and that one exception was also due to the 2020 COVID-19. With the arrival of spring, the largest cryptocurrency rose 22.96% last year, and 29.84% in 2021.
Monthly evolution of BTC/USD, source: CoinGlass
Concern regarding liquidity
Even though Bitcoin is under “fall protection”, such a monthly candle can easily trigger volatility in the coming days and weeks. This might be a potential problem for Bitcoin, as in its current state the order books lack significant liquidity to maintain the previously set levels.
A liquidity snapshot of the BTC/USD order book was published by Material Indicators (@MI_Algos) on a In a Twitter post, according to which the closest support for Bitcoin is at the $59,000 level. Continuing his analysis, Alan Keith, co-founder of MI, noted that the composition of the order book has also changed significantly at lower levels. According to the latest report by Cointelegraph, investors have raised the $20,000 zone from a few months ago to $52,000, which is a significant change – thanks to the event of the past few days.
The impact of ETFs is unquestionable
None of the analysts in the industry expected that February 2024 would go down in the history of cryptocurrencies as such a monumental month, but at the same time, it should not be forgotten that the Grayscale Bitcoin Trust seems to be drying up, while the other Bitcoin spot ETFs are breaking records every day. Many expected Monday’s $520 million, Tuesday’s $576 million and Wednesday’s $673 million in ETF turnover to continue on Thursday, but Grayscale pulled an unexpected one and nearly $600 million – $598.9 million to be exact – GBTC , while BlackRock’s IBIT “only” generated a turnover of $603.9 million.
There is no doubt that the Bitcoin spot ETF is a huge sensation in the United States and its popularity is beyond anything right now. Coupled with the upcoming Bitcoin halving, this effect may increase in value. Volatility is well within the manageable category for Bitcoin, which is currently hovering around $62,000, according to data from Cointelegraph.
1709299866
#Bitcoin #showed #biggest #monthly #increase #February