19,677: This is how many BTC BlackRock, Fidelity and Co. bought in the last two trading days. This corresponds to more than ten times the amount of Bitcoin mined in the same period, with only 900 BTC added per day.
It is not surprising that the Bitcoin price reacts positively to this. When supply is limited but demand is extremely high, the price rises. The price explosion of the crypto reserve currency is not only due to institutional interest.
Bitcoin in February: Almost always price growth
Historical price data is no guarantee for future developments. However, a clear pattern can be seen in the BTC price month-on-month comparison: February has always been a positive month for Bitcoin – ignoring 2020 and 2014.
At the time of writing, the crypto reserve currency is up 34.65 percent in February 2024, data from Coinglass shows. This is more than twice as high as the median value, which indicates price growth of 15.32 percent.
Financial markets at all-time high: When will Bitcoin follow suit?
But it’s not just Bitcoin that’s heading north. There is euphoria across the entire financial market about positive price developments. How out Data According to Finanz100, the S&P500 was at an all-time high on January 20, 2024. The German stock index (DAX) is also conquering one price high after another.
The reason for this: the expansion of money, especially the US dollar. There was an increase of $420 billion in the last 12 months alone. The financial markets would gratefully accept this new liquidity, according to Bloomberg analyst Tavi Costa explained.
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According to BTC-ECHO market expert Stefan Lübeck, the entire financial market is also being affected by the record inflows at Nvidia. The stock has risen 580 percent since October 2022. A few days ago, the security was trading at a new all-time high of over $800, but has since fallen slightly again.
The inherent correlation between the SPX and Nasdaq stock indices and BTC plays into Bitcoin’s hands, explains Lübeck. “Bitcoin even has some catching up to do (catch-up trade) because the US stock markets have consistently traded at new all-time highs since mid-January, but BTC is still trading 14 percent below its all-time high.”
At the time of writing, the crypto reserve currency is trading at $59,160, with daily growth of around 4.4 percent. You can read which price targets are now important and whether BTC will soon break through its all-time high in this detailed analysis: Bitcoin (BTC): Next stop at all-time high?
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