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Bitcoin staged another dramatic surge in price. It briefly broke through $64,000, setting a new high since November 2021. This is the highest price for bitcoin since November 2021, only a step away from the historical peak of $68,991.

Later, bitcoin’s momentum fell back. As of press time, bitcoin was trading at $60,377.42, up 5.9%.

Stimulated by Bitcoin’s rally, the cryptocurrency market has risen across the board. Ethereum, Dogecoin, BNB and others all rose sharply, with Ethereum reaching as much as $3,331, the highest level since April 2022.

According to public data, as of press time, 113,750 people had liquidated their positions in the past 24 hours, with a total liquidation amount of $447 million (about 3.218 billion yuan).

How crazy has Bitcoin been lately? It has risen more than 40% in the past month, setting the largest monthly increase since December 2020. The last time Bitcoin’s price reached $60,000 was in November 2021.

According to Jiemian, this is mainly related to the possibility of the Fed cutting interest rates in June.

The expectation of the US implementing interest rate cuts has increased the attractiveness of high-yield or highly volatile financial products to investors.

Goldman Sachs reported in February that it expects the Fed to cut interest rates sharply in 2024, at least four times, with the first cut starting in June.

Interest rate cuts will reduce borrowing costs, increase liquidity in the market, and drive more funds into other investment channels, including bitcoin. In addition, the attractiveness of low-interest savings or fixed-term products to investors will decline, which will also boost Bitcoin’s price further.

Bitcoin’s rapid rise in price is directly related to the approval of BTC ETFs (exchange-traded funds) in January this year.

On January 10, local time, the US Securities and Exchange Commission (SEC) approved 11 bitcoin ETFs, the first batch of which began trading on January 11. According to media reports, the SEC’s decision will allow ordinary investors to buy and sell bitcoin as easily as stocks and mutual funds.

The new move lowered the threshold for buying bitcoin and also attracted more institutional and retail investors into the market. In addition, the approval of listing also enhanced the legitimacy of crypto assets, thereby boosting Bitcoin’s price gradually.

According to China Fund News, the co-founder of digital cryptocurrency fund AltAlpha Digital said that the bitcoin bull market is back. The unprecedented combination of bitcoin ETFs and bitcoin’s “next halving” attracted a lot of extra capital inflows.

CCData analyst Jacob Joseph said that bitcoin ETFs play a key role in the digital asset market. He said that recent developments that have helped boost market optimism include the record high trading volume of US spot bitcoin ETFs, and MicroStrategy’s additional purchase of more than 3,000 bitcoins, all of which pushed bitcoin closer to its historical high.

Joe DiPasquale, CEO of crypto hedge fund management company BitBull Capital, said that the approval of ETFs and the upcoming bitcoin “halving” led many conservative investors to start buying this asset, creating a historic demand for bitcoin.

According to CoinMarketCap, as of the evening of February 28, Beijing time, there were 52 days and 18 hours left until the bitcoin halving.

DiPasquale said that not only did MicroStrategy disclose a bitcoin purchase of more than $150 million, but there were also reports that other large investors were buying in. He expects bitcoin and other major digital crypto assets to have greater growth this year.