Bitcoin Hits New All-Time High as Bulls Outweigh Sellers

Bitcoin Sees Record Highs Before Wall Street Opens, With Over $1 Billion Inflows for Bitcoin ETFs Celebrated.

Bitcoin hits record high of $73.6K as ETFs increase demand and reduce supply.

🔥🚀 Bitcoin (BTC) continues its unstoppable rise as it reached new price discovery levels before the Wall Street open on March 13. The bulls have triumphed over sell-side liquidity, propelling BTC to new heights. 🐮📈

BTC/USD 1-hour chart. Source: TradingView

BTC Price Roars Back After Snap Wick to $69,000

Data from Blocking.net Markets Pro and TradingView captured Bitcoin’s new all-time high of $73,679 on Bitstamp. Prior to this surge, BTC had taken a breather, consolidating around the $72,000 mark. There was even a snap $4,000 dip that momentarily shook the market.

In a repeat of earlier this week, resistance initially suppressed upwards movement. However, the resistance level of $73,800 was eventually broken, unlocking the pathway to price discovery towards the $80,000 mark. Interestingly, there were no significant liquidation levels to impede this trajectory.

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👉 “Bitcoin wiped out overleveraged longs, retested the 2021 cycle high & then bounced back to $72,000,” summarized popular trader Jelle. He added that the landscape now looked “good” for continued upside movement.

Spot Bitcoin ETFs Experience Record Inflows

Financial commentator Tedtalksmacro highlighted the significant inflow of institutional money into Bitcoin. These inflows have surpassed anything previously witnessed, even when considering the advent of spot Bitcoin exchange-traded funds (ETFs) in the United States.

According to Tedtalksmacro, “Fund inflows like we have never seen before. It makes 2020 look small… price will continue to catch up over the coming months.” He also mentioned that historically, when these flows peak, there are typically 2-3 months before it is advisable to exit the market. 📈💼

Bitcoin fund inflows. Source: Tedtalksmacro on X

The spot Bitcoin ETFs themselves received a whopping $1 billion of net inflows on March 12, according to final data. Among these products, BlackRock’s iShares Bitcoin Trust dominated the market share.

BitMEX Research pointed out that there was an unprecedented 14,706 BTC inflow on March 12, 2024. This amount alone represents a significant portion of the newly-mined supply in that year, totaling around 65,500 BTC.

Unsurprisingly, the two largest ETFs from BlackRock and Fidelity Investments currently hold more than 330,000 BTC combined. This figure is five times the number of BTC added by miners.

Q&A: What You’ve Been Wondering About Bitcoin

1. Q: Is it too late to invest in Bitcoin?

   A: While Bitcoin has reached new all-time highs, many experts believe that there is still room for substantial growth. With increasing institutional interest and a limited supply, Bitcoin’s potential for appreciation remains high. However, it’s always wise to do thorough research and consider your risk tolerance before investing.

2. Q: Are ETFs a good way to invest in Bitcoin?

   A: ETFs provide a convenient and regulated way for institutional investors to gain exposure to Bitcoin. They also enhance market liquidity and attract more capital to the cryptocurrency space. However, investors should be mindful of the risks associated with ETFs and consider consulting with a financial advisor.

3. Q: How do Bitcoin’s inflows affect its price?

   A: Significant inflows of institutional money into Bitcoin demonstrate growing confidence in the cryptocurrency and its potential as a long-term investment. As demand increases, the price often follows suit, especially when supply is limited. However, market dynamics are complex, and various factors can influence price movements.

4. Q: What impact do liquidation levels have on Bitcoin’s price?

   A: Liquidation levels can serve as resistance or support levels during price movements. If there are many liquidations at a particular price level, it can act as a barrier for further upside movement. Conversely, a lack of liquidation levels suggests smoother price discovery, allowing Bitcoin to climb higher more easily.

Looking Ahead: Bitcoin’s Future Outlook

As Bitcoin continues its march towards new price levels, it’s essential to consider the future trends in the cryptocurrency market. While the past performance of Bitcoin is no guarantee of future results, several factors suggest a positive outlook:

1. Growing Institutional Adoption: The influx of institutional money into Bitcoin shows a growing acceptance of cryptocurrencies as an investable asset class. This trend is likely to continue as more traditional financial institutions embrace the potential of digital assets.

2. Limited Supply: Bitcoin’s scarcity is a key driver of its value proposition. With a maximum supply of 21 million coins, the diminishing rate of issuance (halving) every four years, and increasing demand, Bitcoin’s price could see further appreciation.

3. Market Maturity: Over the past decade, Bitcoin has evolved from a niche concept to a globally recognized digital currency. As the market matures and regulation improves, it may attract more mainstream investors, leading to greater price stability and long-term growth.

In light of these trends, it’s important for potential investors to assess their risk tolerance and consider Bitcoin as part of a diverse investment portfolio.

Reference List:

1. Bitcoin is up 1,800% 4 years after the 2020 COVID-19 BTC price crash
2. Future NFTs Bright Says Rari Foundation Strategy Head
3. Tedtalksmacro on X
4. BitMEX Research on X
5. CoinGlass
6. TradingView

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