- Bitcoin has witnessed a staggering 47% surge in value this month, its highest since December 2020, with Ethereum also benefiting from this momentum.
- Ethereum has breached the $3,500 level, a price unseen since April 2022, currently trading at $3,466, marking a February surge of 52%.
- The approval of spot bitcoin exchange-traded funds in the US has led to a renewed interest in the crypto asset market.
Bitcoin’s value has soared by over 47% this month, marking its highest gain since December 2020, and its surge has also propelled Ethereum’s value upwards.
Bitcoin and Ethereum gain momentum
The biggest cryptocurrency by market capitalisation, valued at $62,205, saw a 3.4% increase in value.
The US’s approval and introduction of spot bitcoin exchange-traded funds this year has attracted new investors to the asset class and rekindled the enthusiasm.
Other exchange-traded funds, such as Ethereum, have exceeded the $3,500 mark on Wednesday, a level not seen since April 2022. Currently, Ethereum is trading at $3,466, representing a 4.3% increase from its previous level, with an overall increase of 52% in February alone.
Also read: Bitcoin surges past $57,000 amid investor influx
Traders prepare for halving and anticipate US rate cuts
Ahead of April’s halving event—which occurs every four years and reduces the rate at which tokens are created and the incentives paid to miners—traders have also flocked to bitcoin.
Additionally, the likelihood that the US Federal Reserve would cut interest rates many times this year has decreased bond yields and increased investor demand for riskier assets, such as rapidly expanding tech firms.
Geoff Kendrick, Standard Chartered’s head of crypto research, said: “Rate cuts matter. If you can get higher returns elsewhere, Treasury yields are higher, then you’re comparing that against what you can earn from bitcoin.”
