Bitcoin jumps above $68,000 after five straight monthly losses; $1 billion inflows reflect strong investor faith

Bitcoin traded near the $68,00 mark on Tuesday following its fifth consecutive red monthly close. The cryptocurrency was trading at $67,955 mark.

In the past 24 hours, Bitcoin and Ethereum were up by 3% and 2% respectively. Among the major altcoins, BNB, XRP, Solana, Tron, and Hyperliquid gained up to 8% whereas Dogecoin and Cardano were down 0.45% and 0.6% respectively.

Also Read |Gold vs silver ETF: Which metal should investors prefer amid US-Israel strike on Iran?

The global crypto market capitalisation jumped 2% to $2.33 trillion, according to CoinMarketCap.Riya Sehgal, Research Analyst, Delta Exchange said that the crypto market appears to be stabilizing after a volatile February and despite geopolitical tensions in the Middle East, investors remain composed, as seen in the $1 billion inflows into crypto investment products last week, led by Bitcoin and Ethereum which signals renewed institutional interest amid broader risk aversion.

Overall, macro stability, consistent ETF inflows, and improving risk appetite point toward a cautiously optimistic outlook for March, with both Bitcoin and Ethereum poised to regain positive momentum if global markets remain steady, Sehgal further said.
In the past week, Bitcoin and Ethereum gained 7% and 9% respectively. Among the major altcoins, BNB, XRP, Solana, Tron, Dogecoin, Cardano, and Hyperliquid gained over 25%.Akshat Siddhant, Lead quant analyst, Mudrex said Bitcoin briefly reclaimed the $70,000 mark before consolidating at the current $68,500 zone and on-chain data indicates that Bitcoin exchange reserves have dropped to around 2.6 million BTC, the lowest level since 2018 and this reduction in available supply, combined with steady institutional buying, has helped support recent price strength.

If momentum builds, a move above $71,800 could unlock further upside, while the $65,000 zone continues to provide a solid support base, Siddhant further said.

Also Read | How should mutual fund investors think about their portfolios amid the US-Israel conflict with Iran?

Nischal Shetty, Founder, WazirX said over the past 24 hours, Bitcoin traded around $68,394 and Ethereum near $2,011, following a sharp upward move and this rally has been driven largely by short covering rather than a surge of fresh buying.

As bearish positions were closed, prices moved up quickly. At the same time, steady, gradual demand is building in the background, Shetty said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and twitter handle.