Bitcoin (BTC) price surged over 10% to a new yearly high of $64,000 on February 28.
Bitcoin (BTC) price surged over 10% to a new yearly high of $64,000 on February 28. This impressive rally, which pushed the price up by 50% this month, is largely attributed to investor anticipation surrounding the upcoming supply halving event, historically followed by price increases.
Furthermore, the steady influx of capital into newly launched spot Bitcoin exchange-traded funds (ETFs) is believed to be fueling this upward trend. However, some technical analysts caution against excessive optimism. They warn that the current market structure and high funding rates across the board indicate extensive leverage use, potentially leading to a correction triggered by forced liquidations.
Shortly after reaching $64,000, a sudden price drop saw Bitcoin plummeting to $58,700. This is likely attributed to a combination of selling pressure at the $64,000 level and the liquidation of leveraged long positions. However, Bitcoin has managed to recover nearly 5% of the lost ground at the time of writing.
With Bitcoin currently sitting less than 13% below its all-time high, both retail and institutional investors hold onto the expectation that the record of $68,900 will be surpassed before the supply halving event in approximately 52 days. However, the potential for a correction due to excessive leverage and the uncertain market dynamics necessitate cautious optimism in the near future.
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