Bitcoin surged beyond $63,000 on Wednesday, marking its highest level in over two years, fuelled by a wave of investment into new U.S. spot bitcoin exchange-traded products.
This rally, witnessing a remarkable 42% increase this month, is shaping up to be its most significant monthly gain since December 2020.
However, the excitement was short-lived as Bitcoin unexpectedly experienced a drop, stabilizing at $61,650 during Asia’s morning trading session. This upward momentum in the most traded cryptocurrency’s value also lifted Ether to $3,416, reflecting a substantial 50% surge in February.
Veteran trader Peter Brandt, sharing insights on Twitter, suggested that Bitcoin’s recent surge beyond the upper boundary of a 15-month channel could indicate a target of $200,000 for the current bull market cycle, up from the previous estimate of $120,000. Brandt, known for his analysis of Bitcoin’s price trends, occasionally expresses bullish sentiments.
Similarly, the CEO of Bitwise Asset Management anticipates Bitcoin’s price to reach $250,000 sooner than expected, predicting Bitcoin’s encroachment into gold’s market share to be faster than anticipated.
Traders have been flocking to Bitcoin ahead of April’s halving event, a process designed to slow the release of the cryptocurrency. Additionally, the possibility of the Federal Reserve implementing a series of rate cuts this year has heightened investor interest in higher-yielding or more volatile assets.