Bitcoin Surpasses $61,000 As New All Time High Approaches

Bitcoin surged past the $61,000 mark today, edging closer to a new all-time high as spot Bitcoin ETF inflows and investor enthusiasm continues to drive up prices. The milestone comes amid increasing interest in the Bitcoin market and growing adoption by institutional investors.

JUST IN: $61,000 #Bitcoin 💥🚀 pic.twitter.com/gMLqQ7inTf

— Bitcoin Magazine (@BitcoinMagazine) February 28, 2024

The latest rally in Bitcoin's price reflects ongoing bullish sentiment among investors, fueled by factors such as increasing institutional adoption via spot Bitcoin ETFs, inflationary concerns, and growing mainstream acceptance of Bitcoin. This week in particular has been a record breaking week for the Bitcoin ETFs. Yesterday, BlackRock's ETF took in over $520 million in inflows, which Bloomberg Senior ETF Analyst Eric Balchunas noted it was "the biggest haul for a BTC ETF ever." BlackRock's ETF has done around $1.3 billion in trading volume on each of the last two days.

Whoa.. $IBIT took in $520 million all by itself yest, biggest haul for a btc ETF ever and 2nd most of any ETF yesterday, only $IVV took in more cash.. it is now $8b in aum, top 5% among all ETFs. This means a good portion of that massive volume was new buying vs arb/algo. pic.twitter.com/tnq7SaN2di

— Eric Balchunas (@EricBalchunas) February 28, 2024

Yesterday, spot Bitcoin ETFs purchased 10,050 BTC currently worth $615 million. To put into context how much this is, the amount of new Bitcoin created by miners yesterday was only ~900 BTC. The ETFs appear to be buying up all the available BTC on the market, driving up the price. It is important to note that Bitcoin's fourth halving is approaching, where the mining reward for creating new bitcoin will be cut in half from 6.25 BTC to 3.125 BTC per block.

Wow...

(Data from Feb. 27.; h/t to @HODL15Capital) pic.twitter.com/KvttRhHyAm

— Matt Hougan (@Matt_Hougan) February 28, 2024

Bitcoin has been on a steady upward trend since the beginning of the year, with its price nearly doubling from the start of 2024. At the time of writing, Bitcoin is less than $9,000 away from a new all time high. And with inflows for the Bitcoin ETFs showing no signs of slowing down, and with the halving coming, many market participants are wondering if Bitcoin will hit a new all time high before the halving for the first time ever.