Monthly Bitcoin Price Reaches Highest Increase Since 2020

Key Points:

• The monthly Bitcoin price sees its highest surge since 2020, hitting $64,000.
• Rising demand for Bitcoin ETFs and supply shortages propel prices upward.
• Analysts expect continued price growth, fueled by investor optimism and impending supply halving.

Bitcoin surged in February, marking its highest monthly gain since 2020, as bullish sentiment continues to dominate the market.

Read more: Bitcoin Price Prediction For 2024, 2025, 2026 and 2030: Super Crypto Bull Run

Monthly Bitcoin Price Surges: Highest Gain Since 2020

Despite falling short of its all-time highs, the monthly Bitcoin price has achieved remarkable growth, with prices soaring by nearly 44% in just one month.

The monthly Bitcoin price experienced its strongest performance since December 2020, surpassing key milestones of $50,000 and $60,000 and peaking at $64,000 on Wednesday. This rally came on the heels of a pullback below $40,000 following the introduction of spot bitcoin exchange-traded funds (ETF) in the U.S. in late January.

Analysts Bullish on Bitcoin Amid Supply Shortages

Analysts assert that the current bull market shows no signs of peaking, with factors such as on-chain transaction volume and retail interest still below levels seen during previous peaks. Christian Mueller-Glissmann, head of asset allocation research at Goldman Sachs, attributes the price rally to a heightened risk appetite among investors and optimistic market sentiment.

The demand for Bitcoin ETFs has played a significant role in driving prices higher, exacerbated by a supply shortage. With a surplus of demand and limited supply, investors are willing to pay premium prices for exposure to Bitcoin. The impending halving of the cryptocurrency, which will reduce mining rewards, is expected to further tighten supply, potentially leading to a surge in prices.

Despite lingering uncertainties, bullish sentiment prevails in the Bitcoin market, fueled by investor optimism and structural factors driving demand. As Bitcoin continues to assert its dominance in the cryptocurrency space, market participants eagerly anticipate further price appreciation in the coming months.