The price of the leading cryptocurrency Bitcoin surged over 23% this month, crossing the $52,000 mark for the first time since December 2021. 12% of the surge came during US trading hours, as per a report by Matrixport.
Other regions also contributed significantly to Bitcoin’s rise this month. Europe contributed 7% while Asia 4% in Bitcoin’s 23% monthly gain, Matrixport revealed.
The majority of trading activity occurred during US trading hours as the US Securities Exchange Commission finally approved a series of spot Bitcoin exchange-traded funds, opening floodgates for billions of dollars of inflows from institutional investors.
#Bitcoin prices have increased by +23% during the last month with 12% of those coming from #US trading hours. While the US buy flows appear most important, all regions are positively contributing to the price development of Bitcoin.
Access the full chart for insights:… pic.twitter.com/1TUCpQDhEp
— Matrixport (@realMatrixport) February 26, 2024
Investors Turning to Safe Haven Assets like Bitcoin
Bitcoin is gaining prominence as an appealing option for diversifying portfolios amidst a macroeconomic landscape characterized by enduring inflation, according to analysts.
Jag Kooner, the Head of Derivatives at Bitfinex, noted that various macroeconomic challenges anticipated in 2024 could bolster the safe-haven appeal of assets such as bitcoin, gold, and silver. In an emailed statement to CryptoNews, the analyst stated:
“With inflation persisting above the comfort zones of central banks globally, there’s an expectation of an extended period of elevated interest rates. This situation is likely to moderate current market anticipations for an early easing of monetary policies in developed markets, potentially leading to some investor disillusionment.”
He added that factors such as modest earnings growth and various geopolitical risks are expected to exert downward pressure on stock markets.
Predicting a year of restrained expansion, his outlook for 2024 envisions only marginal growth. The analyst suggests that the S&P 500 might experience modest earnings growth, hovering between 2% and 3%, ultimately settling around the 4,200 mark for the index, albeit with a slight inclination toward the downside.
The upcoming Bitcoin halvening event scheduled in April is also seen as a positive catalyst that will drive the price of the leading crypto later this year.