Bitcoin (BTC) Price Hits ATH In Euro as Holders In Profit Hit 100%

Bitcoin (BTC) is rallying strong and has successfully hit an all-time high (ATH) in Euro.

BTC Hits ATH in EUR and GBP

Precisely, Bitcoin reached an ATH of €60,447 and £51,736 on the American cryptocurrency exchange Coinbase, marking new ATHs. It is worth noting that BTC is yet to surpass its ATH in the United States. In November 2021, the coin reached a market value of over $69,000 on Coinbase. 

Within the last 24 hours, the flagship digital asset has registered more than a 6% increase and at press time, it was trading at $66,190.83. 

The surge in Bitcoin price is driven by several events including the growth in the spot Bitcoin ETF market. Only BlackRock’s IBIT has registered up to $7.8 billion in inflows, followed by Fidelity’s FBTC with $4.8 billion in inflows. 

February turned out to be the month with the longest green candle in Bitcoin’s history. Beyond its price, BTC’s market capitalization has jumped in tandem, now reaching $1.244 trillion. This growth further attenuates its position as Bitcoin dominates the digital asset ecosystem.

Investors’ interest and activities in the Bitcoin market have also increased significantly, a position that is clearly expressed in the trading volume of the coin which also soared by 65.6% to reach $34.75 billion. Buyers seem not to be in losses anymore as the number of addresses in profit has hit almost 100% at 51.94 million

Only about two weeks ago, the volume of BTC addresses in profit had only topped 90%, underscoring the rapid rally in the coin’s metrics.

Impact of Inflation on Bitcoin Price

The dollar index of the coin showed a positive momentum from last week. Notably, the dollar index is a key indicator that tests the strength or relative value of the U.S. currency against six major rivals. A rise in the index is indicative of the dollar’s strength against the other top currencies and vice versa. In January and February, the index cumulatively gained 2.7%.

A recently published statement from Grayscale reiterated the steady decline in U.S. inflation since the year started. To this end, analysts from the popular spot Bitcoin ETF issuer released a cautionary note, warning about the adverse effect of inflation on higher interest rates and consequently, on crypto. 

For context, growing inflation would decrease the likelihood of interest rate cuts by the U.S. Federal Reserve, a scenario that could dampen the prospects for further crypto accumulation and valuation increases as traditional investment instruments will be fairly attractive with limited risks.