Hassan Maishera
TL;DR
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Bitcoin added more than 9% to its value on Monday to touch the $56k level for the first time since November 2021.
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The record spot Bitcoin ETF trading volume on Monday could be one of the major catalysts behind this rally.
BTC Surges Above $56k After Consolidating
Bitcoin has been consolidating for the past few days, with its price stuck around the $51k region. However, the world’s leading cryptocurrency by market cap, broke out and rallied past the $56k mark on Monday.
BTC added more than 9% to its value on Monday to hit a high of $56,740, its highest level since November 2021. However, it has slightly retraced and is now trading at $55,845 per coin.
While speaking with The Block, Lucy Hu, a senior analyst of Metalpha, said the rally can be attributed to the growing spot Bitcoin ETF trading in the United States. She said,
“A key reason behind this surge can be attributed to Bitcoin spot ETF trading volume which reached a new height of $2.4 billion on Feb. 26, further boosting U.S investors’ confidence in this asset class.”
Thanks to this rally, Bitcoin’s total market cap now stands at $1.1 trillion. Ether, the second-largest cryptocurrency by market cap, has been performing excellently over the last few days. It rose by 4% on Monday to surpass the $3,200 mark.
Bitcoin Cash was the best performer amongst the top 20 cryptocurrencies by market cap, adding 13% to its value. At the moment, BCH is trading at $303.24 per coin.
Thanks to yesterday’s rally, the total cryptocurrency market cap has increased by 6% and now stands at $2.12 trillion.
