Why is Bitcoin price up today?
Bitcoin (BTC) price broke out of range on Feb. 23 to continue its 2024 uptrend by hitting a new 2-year high at $54,360.
Several factors fuel BTC’s current price movement, including consistent spot Bitcoin ETF inflows, the upcoming supply halving and the overall positive investor sentiment on the retail and institutional side..
Let’s look at the factors behind Bitcoin’s rally today.
Bitcoin registers $570 million in inflows
According to CoinShares’ reporting, BTC investment products recorded 99% of all inflows over the past 7 days. Bitcoin welcomed $569.5 million inflows, bringing the total global assets under management to $67.5 billion.
Additionally, Bitcoin ETFs continue to see inflows totaling $5.5 billion since their market debut on Jan. 11, according to data from Yahoo Finance. Overall, the crypto products have taken in a net of $5.8 billion since they began trading, according to CoinShares.
The Bitcoin ETFs are also rallying alongside BTC’s price. BlackRock’s Bitcoin ETF IBIT rallied 5% shortly after Wall Street opened on Monday, Feb. 26, to reach an all-time high.
$IBIT, @BlackRock ‘s Bitcoin ETF, hits record high
Every single buyer is in profit ✅ pic.twitter.com/mb0enM2v4P
— HODL15Capital (@HODL15Capital) February 26, 2024
Continued accumulation by institutional investors
MicroStrategy, the largest corporate Bitcoin holder, added to the ongoing theme of bullish institutional interest in Bitcoin. In a Feb. 26 post on X social media platform, the company’s founder and chairman Micheal Saylor announced that MicroStrategy had acquired an additional 3,000 BTC for a total of $155 million at an average price of $51,813 between Feb. 15 and Feb. 25.
MicroStrategy has acquired an additional 3,000 BTC for ~$155 million at an average price of $51,813 per #bitcoin. As of 2/25/24, @MicroStrategy now hodls 193,000 $BTC acquired for ~$6.09 billion at an average price of $31,544 per bitcoin. $MSTR https://t.co/micudbYf3P
— Michael Saylor⚡️ (@saylor) February 26, 2024
The business intelligence firm now holds a total of 193,000 Bitcoin, acquired for $6.09 billion at an average price of $31,544.
Moreover, the ten spot Bitcoin ETFs in the United States have amassed a total of 5,500 BTC since launching on Jan. 11, according to Farside Investors data.
Institutional investors’ continued accumulation of Bitcoin will likely trickle down to retail traders, who will likely buy more BTC in anticipation of a price increase.
Related: ‘Pre-halving top’ due soon? 5 things to know in Bitcoin this week
Bitcoin futures open interest continues to increase
Coinglass data shows increasing interest in the Bitcoin futures market, rising 102% from mid-October to the current value of $23.43 billion. Notably, this is close to the $24 billion record high reached in November 2021 when Bitcoin hit all-time highs above $69,000.
The increase in the BTC OI validates the current volatility in Bitcoin’s price and points to renewed investor interest in the pioneer cryptocurrency. As a result of the latest surge in price, Bitcoin short positions amounting to $41.85 million have been liquidated on Feb. 26 against $9.7 million long liquidations, according to data from Coinglass. Approximately $39 million of Bitcoin shorts were liquidated in the last four hours alone.
Investors expect the fresh round of Bitcoin’s bullish price action to continue as inflows into spot Bitcoin ETFs increase and the supply halving event draws near.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
