Bitcoin ETFs set record trading volume, Bitcoin price reached 57,000 USD

GhSo...taPv

27 Feb 2024

BTC price over the past 24 hours has increased by nearly $5,500, continuing to be driven by spot Bitcoin ETFs.

Since the evening of February 26, the price of Bitcoin (BTC), the world's largest cryptocurrency, has regained upward momentum after many previous days of low-volatility trading, conquering the milestone of 53,000 USD before continuing. continued to jump to 57,000 USD on the morning of February 27.

This is the highest price that BTC has ever achieved since the end of November 2021, just 2 weeks after the currency reached its ATH peak at 69,000 USD.

The reason for BTC's upward momentum once again comes from Bitcoin spot ETFs - a series of investment products for Wall Street giants approved by the SEC in mid-January.

Specifically, according to statistics from analyst Eric Balchunas from Bloomberg, 9 newly launched Bitcoin ETFs (excluding Grayscale's GBTC) on trading day February 26 (US time) recorded a volume of more than 2.4 million. billion USD, surpassing the previous transaction volume record set on January 11, showing that financial institutions' demand for BTC has not subsided. BlackRock's IBIT fund leads with a trading volume of up to 1.3 billion USD,

As of February 23, Bitcoin spot ETFs recorded a positive inflow of 5,668 BTC, despite the huge selling pressure of Grayscale. These funds currently own a total of more than 287,000 BTC after just over 1 month of opening trading.

Also on the evening of February 26, MicroStrategy company announced the purchase of an additional 3,000 BTC at a cost of more than 155 million USD, increasing the number of coins held to 193,000 Bitcoin.

All of the above fluctuations show that the market is still extremely optimistic about the short-term prospects of BTC, in the context of the halving event in mid-April getting closer.

Thanks to Bitcoin's growth momentum, many other large-cap altcoins on the market also fluctuated up by 2-5% in the last 24 hours. ETH also set a new peak of nearly 2 years at 3,196 USD.

In the last 12 hours, there were 294 million USD in derivative orders liquidated in the market, with BTC being the majority. The rate of short orders being burned is nearly 82%.

In a development at the same time, billionaire Michael Saylor's MicroStrategy Company made the latest Bitcoin purchase, with a value of 3,000 BTC (155 million USD).

On the evening of February 26, MicroStrategy President Michael Saylor announced that his company had spent an additional 155 million USD to buy 3,000 Bitcoin (BTC).

Thus, MicroStrategy has increased the amount of Bitcoin it holds to 193,000 BTC, worth 9.8 billion USD at the time of writing. With an average purchase price of 31,544 USD/BTC, the cost the company had to spend was only 6 billion USD, meaning MicroStrategy is profiting nearly 4 billion USD from cryptocurrency.

This is the company's second BTC purchase in 2024, after 37.2 million USD in January. Previously, in 2023, MicroStrategy bought more than 56,500 BTC through 8 transactions spread throughout the year.

As reported, thanks to Bitcoin's recovery over the past 4 months, MicroStrategy's Bitcoin investment not only broke even, but even brought profits up to billions of dollars. The company continues to maintain its position as the independent entity holding the second most BTC, only behind the Grayscale fund.

However, the number of BTC purchased by 9 newly launched Bitcoin ETFs since January has reached 287,000 BTC, continuing to be the driving force behind strong growth in BTC price and peaking at nearly 53,000 USD - a high highest since December 2021.

In a recent interview, Mr. Michael Saylor stated that he still has no intention of selling Bitcoin, and will instead continue his strategy of accumulating the world's largest cryptocurrency.