On Wednesday, Bitcoin, the foremost cryptocurrency, experienced a tumultuous journey, plunging by 7% from its pinnacle of $64,000. Earlier in the day, it soared beyond $60,000 for the first time since November 2021, before swiftly retracting to $59,400, setting the stage for a volatile trading atmosphere.
Meanwhile, trading volumes for the ten recently launched U.S. Bitcoin ETFs hit a historic peak, surpassing their previous record by more than double, marking a significant milestone in the cryptocurrency market.
The trading volumes of United States spot Bitcoin (BTC) exchange-traded funds (ETFs) witnessed a remarkable surge, surpassing the previous record by more than one and a half times.
As of February 28, these ten ETFs collectively amassed a trading volume of $7.69 billion, as per data from X reported by Bloomberg ETF analyst James Seyffart.
This figure significantly outpaced the previous record of $4.66 billion, established on the launch day of the funds on January 11. Among these ETFs, BlackRock’s iShares Bitcoin ETF (IBIT) accounted for 43.5% of the total volume, hitting $3.35 billion and doubling its prior daily record.
Notably, this volume also represents roughly double the trading activity of all ten ETFs combined on the preceding day, February 27.
Top Reason's for Price Surge
The recent surge in Bitcoin, marked by a significant 42% increase in February, received a substantial boost from the approval of U.S. Bitcoin ETFs. This development has attracted heightened trading activity from major institutions such as Grayscale and BlackRock, suggesting a growing interest in cryptocurrency among traditional financial players. Furthermore, factors like the impending Bitcoin halving event and anticipated U.S. Federal Reserve rate cuts have also played a role in propelling Bitcoin's ascent to the milestone of $64,000.
Bitcoin's recent surge to $64,000, fueled by ETFs, altcoin impacts, and market turbulence, reflects a broader trend evidenced by February's 42% rise. Despite corrections and government involvement, Bitcoin's future trajectory remains uncertain.
Discover more about the recent cryptocurrency market turmoil and its implications on below article.
https://coinpedia.org/news/bitcoin-price-analysis-from-64000-highs-to-sudden-corrections-what-really-happened/