Bitcoin inches to $55,000, eyes all-time high with 21% gap

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The price of Bitcoin (BTC) moved closer to $55,000 on Monday after breaking through the $53,000 mark and extending its rally to $54,900 within the day, according to data from TradingView. At press time, BTC is trading at around $54,700, around 21% away from the all-time high of $69,000 in November 2021.

As bulls take charge, the crypto market cap tops $2.09 trillion, up almost 4.5% in the last 24 hours.

Bitcoin’s price surge comes amid the strong performance of spot Bitcoin exchange-traded funds (ETFs). Bloomberg ETF analyst Erich Balchunas noted that BlackRock’s iShares Bitcoin Trust (IBIT) traded $1 billion worth of shares on Monday. With significant trading activity, the fund is ranked 11th among all ETFs.

MILESTONE $IBIT has traded $1b worth of shares today so far.. which ranks it 11th among all ETFs (Top 0.3%) and Top 25 among stocks. Insane number for newbie ETF (esp one w ten competitors). $1b/day is big boy level volume, enough for (even big) institutional consideration. pic.twitter.com/1vxW5jhaXT

— Eric Balchunas (@EricBalchunas) February 26, 2024

Balchunas said in a separate statement that the success of spot Bitcoin ETFs is challenging the throne of gold ETFs. He predicted that Bitcoin ETFs could surpass gold ETFs in AUM in less than two years.

Analysts previously anticipated a potential supply shock due to the combined buying pressure from those Bitcoin ETF funds, especially with the Bitcoin halving approaching. This supply-demand dynamic could drive the price upwards. Crypto trader Rekt Capital even predicted a pre-halving rally for BTC this month.

Adding to the bullish day’s momentum, MicroStrategy announced earlier today a purchase of an additional 3,000 BTC, equivalent to around $155 million at the purchase price. The firm’s total BTC holdings now sit at 193,000 BTC.

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