Bitcoin Price Remains Strong Above $62K as ETF Trading Reaches Record Highs

The value of Bitcoin briefly rose above $64,000 on February 28th before dropping back down to the $62,000 range. This surge was accompanied by record levels of trading in spot Bitcoin ETFs and an increase in cryptocurrency liquidations.

As of 3:35 pm UTC, the leading cryptocurrency was trading at $62,669, showing a 5% increase in the last 24 hours.

This recent rally has resulted in a 93% jump in Bitcoin’s daily trading volume, reaching $90.2 billion. Its market capitalization has also risen to $1.23 billion, solidifying its position as the most valuable cryptocurrency according to the CoinMarketCap ranking.

The spike in Bitcoin’s price has largely been attributed to the growing demand for new spot Bitcoin ETFs.

The Rise of Web 3.0: Record Inflows for U.S. Bitcoin ETFs

The rise of Web 3.0 has brought about a surge of investment in spot Bitcoin ETFs, with a record $673 million of net inflows on Feb. 28 as BTC reached new heights above $64,000. This marks a significant increase from the previous record of $655.2 million set on Jan. 11, when these funds first became available for trading.

Leading the pack was BlackRock’s iShares Bitcoin Trust, with a high inflow of $6.12 million. Following closely behind was the Fidelity Wise Origin Bitcoin Fund, with $245.2 million, and the ARK 21Shares Bitcoin ETF, with $23.8 million. However, the Grayscale Bitcoin Trust saw outflows of $216.4 million on Feb. 28.

Additional data from BitMEX Research shows that the nine new Bitcoin ETFs collectively received net inflows of $7.4 billion, the highest since their launch.

“Only a select few ETFs are seeing inflows at the same rate as $IBIT right now. It’s likely to hit $10 billion tomorrow, making it the fastest ever to reach that milestone in just 7 weeks,” tweeted Bloomberg ETF analyst Eric Balchunas. “For comparison, it took $GLD over two years and VOO over three years to reach $10 billion.”

Bitcoin price volatility leads to significant crypto liquidations

The volatile nature of Bitcoin’s price has resulted in a large number of leveraged positions being liquidated in the crypto market. According to Coinglass data, as the price hovered around $63,500 during the early Asian trading hours on Feb. 29, there were $435 million worth of short liquidations and $364 million worth of long liquidations in the past 24 hours.

When the New York trading session began with prices at $62,500, a total of $683 million, including $341 million in longs and $341 million in shorts, were liquidated within 24 hours.

Within the last 24 hours, approximately $143 million of Bitcoin shorts were liquidated, while $102 million worth of long positions were liquidated. The largest single liquidation order, valued at $9.35 million, occurred on OKX for the BTC/USDT SWAP.

With the rise in inflows into spot Bitcoin ETFs and the upcoming supply halving event, investors are anticipating further bullish price action for Bitcoin.

The Upside Potential of Bitcoin in Web 3.0

According to independent analyst Ali, Bitcoin is currently facing minimal resistance as it continues to climb in value. This is supported by IntoTheBlock’s In/Out of the Money Around Price (IOMAP) chart, which shows a strong support zone between $54,300 and $56,200. This zone has seen a significant number of addresses, totaling 903,540, buy nearly 500,000 BTC.

The IOMAP chart also reveals that the majority of addresses, approximately 89.75%, are currently in the money at the current price, leaving only 9.24% who are out of the money. This suggests that there is little resistance to prevent further price increases.

Looking at the weekly chart, we can see that this support level has previously served as a bounce level for BTC, as seen in 2021 when the price bounced off this level and reached a swing high of $64,500 before eventually reaching all-time highs of $69,000 on November 10th of that year.

Further supporting the bullish sentiment, the relative strength index (RSI) is currently at 85 and the moving averages are pointing upwards, indicating strong buyer dominance in the market.

However, short-term traders should take note that the TD Sequential indicator has signaled a sell on the four-hour chart. In the past, this has resulted in price corrections of 1.50% to 4.20%, so caution should be exercised.