After nearly two weeks of hiatus, the world’s largest cryptocurrency Bitcoin (BTC) smashed past $57,000 earlier today in a massive breakout. As of press time, the Bitcoin price is up 9.62% trading at $56,486 with its market cap crossing $1.1 trillion for the first time since 2021.
BTC Decouples from S&P 500
The massive surge in the Bitcoin price comes on the day when the S&P 500 was trading in negative territory. On Monday, February 26, the S&P 500 ended 0.5% in the negative while Bitcoin recorded an upward trajectory with a staggering 10% gain.
This clearly shows that BTC and the broader crypto markets are shedding their reliance on equities. Throughout history, a lack of significant correlation between cryptocurrency markets and stock markets has paved the way for the most substantial bull runs for Bitcoin (BTC) and altcoins.
Bitcoin has demonstrated superior performance compared to traditional assets such as stocks and gold in the current year. The ratio comparing Bitcoin’s price to that of the precious metal has reached its highest level in over two years. Since the beginning of the year, Bitcoin’s price has surged by 33%, continuing a sustained upward trend that has also fueled interest in altcoins like Ether and BNB.
Bitcoin ETFs Set New Records
Since January 11, a total of $5.6 billion has flowed into several significant Bitcoin ETFs launched in the US, indicating an expanding interest in the token beyond dedicated digital asset enthusiasts. The forthcoming reduction in BTC’s supply growth, known as the Bitcoin halving, further contributes to the positive sentiment surrounding the cryptocurrency.
On Monday, the nine BTC ETFs combined recorded an all-time new high of $2.4 billion in trading volumes. Of these BlackRock’s IBIT alone recorded over $1 billion in trading volumes.
It’s official..the New Nine Bitcoin ETFs have broken all time volume record today with $2.4b, just barely beating Day One but about double their recent daily average. $IBIT went wild accounting for $1.3b of it, breaking its record by about 30%. pic.twitter.com/MiCs1rzttM
— Eric Balchunas (@EricBalchunas) February 26, 2024
Furthermore, Grayscale’s GBTC recorded its lowest outflows so far at $22.4 million. This shows the massive influx of institutional capital into Bitcoin ETFs even when the macros look a bit uncertain.
On Monday, business intelligence firm MicroStrategy announced the acquisition of approximately 3,000 additional tokens this month. With this latest purchase, the company’s Bitcoin holdings now amount to around $10 billion.
On the other hand, whale buying has continued in a strong manner throughout the last month. More than 150 new addresses, each holding more than 1,000 BTC have been created over the last month.
#Bitcoin whales are going parabolic! In just the last month, over 150 new #BTC addresses, each holding more than 1,000 $BTC, have been created. pic.twitter.com/3lox2KrPcm
— Ali (@ali_charts) February 26, 2024
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
