The world’s largest cryptocurrency price rose more than 9% in the past 24 hours, reaching $56,200, according to CoinMarketCap. Bitcoin has now increased by nearly 30% in February 2024.
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Halving is an important event in the Bitcoin system that occurs once every 4 years. After the halving event, the number of newly created Bitcoins through the mining process is reduced by half. |
“February 26th is the day of settlement for Bitcoin futures contracts, and this is a factor contributing to the sharp increase in Bitcoin’s price,” said Ryan Rasmussen, an analyst at Bitwise Asset Management. “We are entering a phase where traders are preparing for the upcoming Bitcoin halving, expected to take place in late April 2024. I believe traders will position themselves to buy Bitcoin before the halving period.”
Most cryptocurrencies are performing well, with Ethereum rising more than 4% to $3,240, BNB soaring 13%, Solana and Dogecoin advancing 1%.
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Top 10 cryptocurrencies
Source: CoinMarketCap
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Related stocks to cryptocurrencies are also surging. Coinbase and Microstrategy stocks are up 16%, while Riot Platforms and Marathon Digital, the two largest Bitcoin mining companies in the world, are up 15% and 20% respectively.
“Bitcoin has been fluctuating around $52,000 for the past 2 weeks and is looking for an opportunity to break through this level,” said Owen Lau, an analyst at Oppenheimer.
In a recent report, Nikolaos Panigirtzoglou, an expert at JPMorgan, pointed out that after a slowdown in January 2024, retail investors’ interest in cryptocurrencies has returned in February 2024 and has become the main driving force behind the price surge.
This expert identified 3 catalysts that stimulate the interest of retail investors: Bitcoin halving event, Ethereum software update, and the possibility of approving Ethereum ETFs for immediate trading.
