The price of Bitcoin has increased dramatically this month and is heading for its largest monthly gain since December 2020. 

According to the article, Bitcoin was trading at around $61,100 on the morning of February 29th. This marked a rise of over 44% for the month so far. 

If the price continues rising at this rate, it will be Bitcoin’s strongest monthly performance in more than three years. The last time it increased this much over a month was December 2020.

Some key factors that have contributed to Bitcoin’s price surge in February include:

  • Launch of Bitcoin spot ETFs in the US: Exchange-traded funds (ETFs) that directly hold Bitcoin launched on US stock exchanges in 2022. This has opened up Bitcoin to new investors and reignited interest.
  • Inflows into large Bitcoin funds: Data shows huge inflows of $420 million on one day alone into the 10 biggest Bitcoin spot ETFs. This suggests growing institutional demand. 
  • Upcoming Bitcoin halving: Every four years, the rewards given to Bitcoin miners for verifying transactions is halved. This is scheduled to happen in April and often pushes the price up ahead of time.
  • Macroeconomic conditions: Low volatility in foreign exchange and stock markets has driven demand for riskier assets like Bitcoin that offer higher returns.
  • Positive momentum: As the price rises, it generates further buying interest which fuels the momentum. Traders are now eyeing whether Bitcoin can break its all-time high price of around $69,000.

Some analysts are calling Bitcoin’s gains a “parabolic rally” but also warn this type of explosive upward move can’t last forever and a price top may be near. However, others note unique factors like the US ETF launches that could sustain the current rally.

If the strong momentum continues through February, it will mark an incredible turnaround for Bitcoin after its price crashed over 50% from its late 2021 peak. The growing mainstream adoption and institutional interest appears to be driving its latest surge higher.

In summary, Bitcoin price has surged over 44% this month, setting it up for the largest monthly gain since December 2020. Launch of US bitcoin ETFs and huge inflows into large crypto funds have boosted demand. The price rise is fueling further momentum, with some analysts predicting Bitcoin may break its all-time high soon. However, parabolic price rallies are unsustainable long-term.