- February proved to be a joyous month for Bitcoin investors as the BTC price surged to $64,000, marking a new all-time high.
- Bitcoin concluded February with an impressive almost 45% increase, showcasing its strongest performance since December 2020, securing its sixth consecutive monthly gain.
- Sylvia Jablonski, CEO and Chief Investment Officer of Defiance ETFs, highlighted the main catalysts for this surge as the introduction of new ETFs and the upcoming Bitcoin halving.
Bitcoin strengthened in February, reaching $60,000 and eventually hitting $64,000. What might happen in March? Predictions!
Bitcoin Price Strengthened in February
February proved to be a joyous month for Bitcoin investors as the BTC price surged to $64,000, marking a new all-time high. Bitcoin’s price increased by 3% on the last day of February, reaching $62,080. Before rising to $64,000 on Wednesday, it experienced a wave of long liquidations, pulling back to around $60,000.
Bitcoin concluded February with an impressive almost 45% increase, showcasing its strongest performance since December 2020, securing its sixth consecutive monthly gain. February emerged as a success for Bitcoin exchange-traded funds (ETFs), witnessing a record daily net inflow of $677 million on Wednesday alone. These were the third consecutive days with inflows surpassing $500 million.
However, outflows from Grayscale Bitcoin ETF (GBTC) exerted downward pressure on the Bitcoin price. Investors attribute the notable gains in February to Bitcoin’s supply and demand dynamics. Sylvia Jablonski, CEO and Chief Investment Officer of Defiance ETFs, emphasized the main catalysts for this surge as the introduction of new ETFs and the upcoming Bitcoin halving. Sylvia Jablonski stated, “We’ve seen over $2 billion come into Bitcoin ETFs, so there is a need for more bitcoin supply to create these ETFs, and that is particularly bullish for short-term price moves,” and added:
“Secondly, another reason why we could get a little bit of extra momentum in the price over the last few days is the upcoming halving. Historically, halvings have led to an increase in Bitcoin prices… past performance may not be indicative of future results, but there is a belief that the halving process will lead to a similar level of price appreciation.”
Historically, February has been consistently strong for Bitcoin. Bitcoin has ended 10 out of the last 12 Februarys with gains, and the average return for the month is reported as 15.7%, according to CoinGlass.
What Will March Bring for Bitcoin?
Galaxy Digital CEO Michael Novogratz suggests that investors should be cautious, noting that the Bitcoin price may experience some corrections before reaching record levels and could ultimately end significantly higher by the end of the year. Novogratz added:
“If we see a correction and a consolidation, I wouldn’t be surprised. If there is a correction, Bitcoin’s price could fall to the mid-$50,000s before reaching a new high. The market is currently over-leveraged. There will be a clean-up after such big runs. People can’t sustain this much leverage.”
Novogratz stated that among millennials and Generation Z investors chasing high returns, “some will win, but many will face serious losses.” He characterized the ongoing rally, especially with the introduction of Bitcoin ETFs, as a “price discovery” phase, attracting a “fresh cohort” of buyers and sellers. Bitcoin has recorded an increase of over 40% since the beginning of the year, supported by the positive launch of ETF products.
