Rising Interest in Cryptocurrencies: Czechs Spend 400 Million in February

In February, Czechs spent nearly 400 million crowns on cryptocurrencies, marking a year-on-year increase of two-fifths. Compared to January, trading volume rose by around 50 million crowns. This surge is mainly due to the dramatic increase in demand for Bitcoin after the launch of exchange-traded funds (ETFs) and speculative purchases, according to data from Bit.plus.

Over the past few weeks, Bitcoin has been breaking all records. Earlier in the year, before the approval of 11 Bitcoin ETFs, the value of the most famous cryptocurrency was 946,227 CZK. “Thanks to ETFs, institutions are taking Bitcoin seriously, and the inflow of new capital will gradually affect the price. I think many people underestimate how great a long-term impact ETFs will have on the price of Bitcoin,” said Roman Valihrach, founder and CEO of the Czech cryptocurrency exchange Coinmate.

Bitcoin set a new record this Tuesday, with one virtual coin trading for 1,609,426 CZK. Exactly a year ago, Bitcoin was offered for a mere 494,257 CZK. Hence, the exchange rate has tripled over the past 12 months.

Martin Stránský, the director of Bit.plus, believes that the upcoming halving of Bitcoin, known as halving, also contributes to the growing demand. Halving is set to take place in mid-April and, based on experience, could lead to another price increase, the expert said.

However, at this moment, no one can say with 100% certainty which direction the Bitcoin exchange rate will take in the coming days and weeks. High volatility, i.e., fluctuation in value, is typical for cryptocurrencies. Therefore, all risks need to be carefully considered before investing.