BTC Achieves Record Highs in EUR and GBP
Bitcoin (BTC) continues its impressive rally, reaching an all-time high (ATH) of €60,447 and £51,736 on Coinbase. While these milestones mark historic peaks for European and British investors, the cryptocurrency still trails its November 2021 U.S. ATH of $69,000.
The flagship cryptocurrency has gained over 6% in the last 24 hours, currently trading at $66,190.83. This surge reflects growing institutional adoption through spot Bitcoin ETFs, with BlackRock's IBIT attracting $7.8 billion in inflows and Fidelity's FBTC securing $4.8 billion.
Key Market Indicators Show Strong Bitcoin Performance
- Market capitalization: $1.244 trillion
- 24-hour trading volume: $34.75 billion (65.6% increase)
- Addresses in profit: 51.94 million (nearly 100% of holders)
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Understanding the Inflation-Bitcoin Correlation
The U.S. dollar index gained 2.7% in January-February, reflecting currency strength amidst evolving economic conditions. Grayscale analysts recently warned that persistent inflation could delay Federal Reserve rate cuts, potentially impacting crypto valuations.
Why this matters: Higher interest rates might make traditional investments more attractive compared to volatile assets like Bitcoin. However, the current market demonstrates remarkable resilience, with February producing Bitcoin's longest-ever green monthly candle.
Bitcoin ETF Market Growth Signals Institutional Confidence
The spot Bitcoin ETF market has become a significant price driver:
- BlackRock's IBIT: $7.8 billion inflows
- Fidelity's FBTC: $4.8 billion inflows
- Market dominance: Bitcoin now represents over 50% of total crypto market cap
These products have provided institutional investors with regulated exposure to Bitcoin, contributing to the current price surge.
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FAQ: Bitcoin's Price Surge Explained
Q: Why is Bitcoin hitting ATH in Euro but not USD?
A: Currency fluctuations and regional demand differences create varying price milestones across markets.
Q: What does "100% holders in profit" mean?
A: Nearly all Bitcoin addresses holding BTC are currently worth more than their initial investment.
Q: How do Bitcoin ETFs affect price?
A: ETFs create new demand channels, with institutional inflows supporting price stability and growth.
Q: Could inflation hurt Bitcoin's rally?
A: Potentially—if the Fed maintains high rates, some investors might prefer traditional assets.
Q: What's next for Bitcoin price?
A: Market watchers anticipate continued volatility with potential new highs as halving approaches.
Market Trends Supporting Bitcoin's Value
Recent developments suggest strong fundamental support for Bitcoin's valuation:
- Increasing institutional adoption
- Growing ETF inflows
- Positive on-chain metrics
- Upcoming halving event (April 2024)
While macroeconomic factors like inflation remain watchpoints, the current market structure demonstrates unprecedented institutional confidence in Bitcoin's long-term value proposition.