Key Points
- Bitcoin's price briefly rose above $64,000 on Feb. 28, driven by record volumes in spot Bitcoin ETFs and increased crypto liquidations.
- Spot Bitcoin ETFs saw record daily inflows, and Bitcoin's market capitalization increased to $1.23 billion.
On Feb. 28, the price of Bitcoin (BTC) briefly surged past $64,000 before retreating to the $62,000 zone. This increase in BTC price was accompanied by record volumes in spot Bitcoin ETFs and a spike in crypto liquidations. At 3:35 pm UTC, the leading cryptocurrency was trading at $62,669, marking a 5% rise over the previous 24 hours.
Bitcoin's Trading Volume and Market Cap
The recent rally resulted in a 93% increase in Bitcoin's daily trading volume, reaching $90.2 billion. Additionally, Bitcoin's market capitalization rose to $1.23 billion, solidifying its position as the most valuable cryptocurrency.
The surge in Bitcoin's price is largely attributed to increased inflows into the new spot Bitcoin ETFs. On Feb. 28, as BTC soared past $64,000, these ETFs recorded a record $673 million of net inflows. This exceeded the previous high of $655.2 million set on Jan. 11 when they began trading.
Spot Bitcoin ETFs and Crypto Liquidations
BlackRock’s spot Bitcoin ETF, IBIT, contributed around $6.12 million of that amount, marking its highest inflow to date. Fidelity’s ETF (FBTC) came second with approximately $245.2 million, followed by ARK Invest 21Shares’ ARKB with $23.8 million. On the other hand, Grayscale’s ETF (GBTC) recorded outflows totalling $216.4 million on Feb. 28.
Bitcoin's price volatility led to substantial liquidations of leveraged positions across the crypto market. As the price hovered around $63,500 during the early Asian trading hours on Feb. 29, short positions worth $435 million were liquidated over the last 24 hours, compared to $364 million long liquidations.
As the New York trading session commenced with prices around $62,500, a total of $683 million — comprising $341 million in longs and $341 million in shorts—were liquidated within 24 hours.
With increasing inflows into spot Bitcoin ETFs and the impending supply halving event, investors anticipate the continuation of Bitcoin’s bullish price action.
Bitcoin's Future Outlook
Independent analyst Ali shared a chart showing that Bitcoin’s price faces “literally no resistance ahead.” The chart revealed a significant support zone between $54,300 and $56,200, where approximately 903,540 addresses previously bought nearly 500,000 BTC.
The weekly chart shows that the above-mentioned support level has previously provided a good bounce level for BTC. This was evident in 2021 when the price first set a swing high at $64,500 and later reached all-time highs at $69,000 on Nov. 10 that year.
However, Ali cautioned short-term traders that the TD Sequential indicator had flashed a sell signal on the four-hour chart. If this is confirmed, it may result in “$BTC price corrections between 1.50% and 4.20%,” as has happened in the past.
