Today (1-March-2021) it was confirmed that Krýsuvík volcano is having a large magma injection from depth into the shallower layers of the crust. Resulting in the current earthquake swarm. At the writing of this article it seems that the magma is located at around 6 km depth. Detected displacement by GPS recordings is now more than 30cm according to the news and scientists.
The image above is from here on Facebook. What is also interesting is the activity in Reykjanes volcano. There have also been earthquakes in Reykjanes volcano but they have been fewer but not necessarily smaller in magnitude
Next article is going to be tomorrow (02-March-2021) if nothing major happens.
Update 2-March-2021 at 13:40 UTC
This morning it was confirmed that the volcano that is having a major dyke intrusion is the volcano Krýsuvík and not the volcano Reykjanes as I first thought since earthquake activity for the last 14 months has been most active in this volcano. This article has been corrected in light of this information. The border between the two volcanoes is little unclear on the map and even different between maps.