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  • Writer's pictureTeresa Pace

Bitcoin surpasses the $60,000 mark for the first time in more than two years.

Bitcoin last traded above $60,000 in November 2021, shortly after reaching its peak. Could we see a "pre-halving retracement" soon? Recently, Bitcoin surged over 6% in a 24-hour period leading up to 1:00 pm UTC, reaching $60,001 on Binance at 1:11 pm, marking its first time above this threshold in over two years.

According to CoinMarketCap data, the world’s first cryptocurrency has risen by over 13% on the weekly chart and 37% over the past month. The previous instance of Bitcoin trading above $60,000 was on Nov. 12, 2021, initiating a reversal that saw it plummet over 67% to a low of $19,297 by early April 2022.

The recent surge in Bitcoin's price is largely attributed to market anticipation of the upcoming halving event, historically associated with increased buying activity, as noted by Bryan Legend, investor and CEO of Hectic Labs. However, a "pre-halving retracement" scenario is still plausible, according to pseudonymous crypto analyst Rekt Capital. This analyst suggests that the forthcoming Bitcoin halving may not yet be factored into the market, citing historical data indicating major Bitcoin movements occurring after, rather than before, previous halvings, as shared in a Feb. 28 post by Rekt Capital.

Bitcoin's bullish momentum follows the spot Bitcoin exchange-traded funds (ETFs) in the United States breaking an all-time high of $2.4 billion in daily trading volume on Feb. 26, as reported by Eric Balchunas, senior ETF analyst at Bloomberg. The nine new spot Bitcoin ETFs collectively recorded trading volumes exceeding $2 billion for the second consecutive day on Feb. 28. Balchunas also highlighted that BlackRock’s iShares Bitcoin Trust ETF witnessed over 100,000 individual trades on Feb. 27, a significant increase from the average daily trades of around 30,000 to 60,000, according to a post by Balchunas. Notably, approximately 75% of new Bitcoin investments were attributed to the spot Bitcoin ETFs in the United States, based on a Feb. 14 report by CryptoQuant, an on-chain data analytics firm.

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