With Bitcoin crossing the $57,000 level, where does that leave the cryptocurrency industry? – Digital Transformation News

From what it’s understood, BTC’s market capitalisation went past the $1.1 trillion mark, which was last recorded in 2021. As per market experts, this BTC development highlights the diminishing dependence of the crypto market on the equity market which has resulted in BTC bullishness in the past. Reportedly, on February 26, 2024, while BTC secured a roughly 10% rise in value, the S&P 500 finished the trading day with an approximately 0.5% negative value. Data provided by Coinglass, a cryptocurrency derivative data analysis platform, mentioned that with BTC going past the $57,000 mark and Ethereum (ETH) crossing the $3,200 level, rise in the amount of liquidations totalled to nearly $285 million, on account of mainly short orders reaching up to $211 million. Along with emphasising on the volatility of the cryptocurrency sector, this wave of liquidations seem to also highlight the heightened interest in cryptocurrencies, with institutional and retail investors playing a part in it. 

In recent developments, MicroStrategy, a business intelligence company, made a BTC investment worth $155 million, which shows the developing institutional interest over BTC. With crypto whales, which refer to entities holding a major chunk of a particular cryptocurrency, also influencing the market, the bullish BTC run can extend for a long-term. “I believe this rally has been primarily triggered by institutional allocation and the increased retail participation in the last few months due to BTC spot ETF applications in the US and upcoming BTC halving. Even though prices started dropping after 11 spot ETFs were approved by the SEC last month, owing to profit-booking by early investors, BTC found support below $40,000 which also coincided with 100-day moving average,” Zakhil Suresh, CEO, BitSave, a crypto investment platform, stated. 

As of February 27, 2024 (1.36 pm, Indian Standard Time), at the time of filing this story, BTC was trading close to the $56,250 range, having a 24-hour trading volume of about $48.31 billion which rose by close to 236%, in accordance to CoinMarketCap, a crypto price-tracking website. Going forward, market experts have highlighted the need for BTC to range near the $60,000 value before the BTC Halving event. “Since the launch of the BTC ETF last month, year-to-date inflows have surpassed over five billion dollars. As the market inches toward the BTC Halving, we may see a new BTC all-time high by early May. Ethereum (ETH) broke $3,200, which is yet to have a similar rally as BTC, and is expected to hold these levels until the halving. ETH-spot ETFs could send the second-largest crypto to new all-time highs,” Manhar Garegrat, country head – India and global partnerships, Liminal, a custody solutions platform, concluded.

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