Strong institutional buying and anticipation surrounding the upcoming Bitcoin halving event have propelled BTC into a persistent upward trajectory. Bitcoin surged to a 27-month high of $57,513 on Feb. 27, driving positive momentum across the crypto market, fueled by increased investor confidence and significant inflows into spot Bitcoin exchange-traded funds (ETFs).
As of the latest update, BTC is trading at $57,073, marking a 10% increase over the past 24 hours. The last time Bitcoin traded above $57,000 was more than two years ago, in December 2021, before entering a prolonged bear market.
Several factors contribute to Bitcoin’s current surge, including ongoing institutional investment, anticipation of the impending halving event, and favorable sentiment from both retail and institutional investors.
Institutional investors continue to demonstrate confidence in Bitcoin, with MicroStrategy recently acquiring an additional 3,000 BTC, bringing their total holdings to 193,000 BTC. Moreover, new spot Bitcoin ETFs have collectively amassed 300,000 BTC, valued at $17 billion since their launch on Jan. 11, with net inflows exceeding $6 billion. These ETFs now hold approximately 1.5% of Bitcoin’s total supply.
Anticipation surrounding the upcoming Bitcoin halving event scheduled for April has also contributed to the price surge. The halving event, which occurs every four years, reduces the reward for mining new blocks by half, leading to a decrease in the Bitcoin supply. As a result, investors are positioning themselves ahead of the event, expecting a bullish market trend.
BTC’s rise above $57,000 has triggered a surge in the liquidation of short positions, with approximately $262 million worth of crypto short positions being liquidated in the past 24 hours. Market participants anticipate continued bullish price action in Bitcoin, signaling the beginning of a new bull market.