Bitcoin Price Hits All-Time High: Is a Correction Incoming?

Bitcoin reaches record high of $69,000 on Tuesday, maintains around $67,000 mark, but potential correction looms as rapid price increase raises concerns, according to cryptocurrency market data and on-chain provider CryptoQuant.

BTC price rose too quickly, leading to short-term correction, says CryptoQuant.

By Tanzeel Akhtar | Last updated: March 8, 2024 02:27 EST | 1 min read

Source: Adobe / czchampz

Bitcoin price hit an all-time high of $69,000 on Tuesday, and while it is currently hovering around the $67,000 mark, there are signs that suggest a short-term pause or correction may be on the horizon. According to on-chain data provider CryptoQuant, the rapid increase in prices could be cause for concern.

Data from CryptoQuant reveals that Bitcoin inflows into accumulation addresses have reached record daily inflows of 38,000 Bitcoin, coinciding with the price approaching record levels. The surge in Bitcoin price is closely linked to the influx of money from new investors. The growing ETF holdings and Bitcoin flows into accumulation addresses further highlight this trend, as pointed out by CryptoQuant.

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🔥 Hot Take: Just like a rollercoaster ride, Bitcoin’s price has soared to incredible heights, but it might be time for a short break before the next thrilling drop or rise!

Indeed, the total Bitcoin holdings of accumulation addresses have also reached record levels, currently standing at 1.5 million Bitcoin. These addresses represent investors who only accumulate Bitcoin and have never sold, indicating strong demand in the market.

Q&A: Are investors who accumulate Bitcoin in accumulation addresses more likely to hold for the long term?

Yes, investors who choose to accumulate Bitcoin in these addresses demonstrate a long-term perspective on their investments. They believe in the potential growth and value of Bitcoin, hence their strategy of continuous accumulation.

Additionally, CryptoQuant reports that the total Bitcoin holdings of ETFs (excluding the Grayscale GBTC) stand at 360,000 Bitcoin, accounting for 1.8% of the total Bitcoin supply. The approval of eleven Bitcoin spot ETFs in the U.S. earlier this year has showcased a massive appetite for these types of products. In fact, even BlackRock, the world’s largest asset manager with $10 trillion in assets, has entered the Bitcoin market, launching a new Spot Bitcoin product, which has bolstered the ongoing bull market.

Q&A: What does the entry of BlackRock in the Bitcoin market signify?

The entry of BlackRock, a prominent and influential asset manager, into the Bitcoin market is a significant development that further validates Bitcoin as a legitimate and mainstream investment. It not only boosts investor confidence but also paves the way for wider adoption and acceptance of cryptocurrencies.

Now, let’s talk about the future outlook for Bitcoin. Bitget’s Managing Director, Gracy Chen, predicts a potential climb to $120,000 – $140,000. This optimistic forecast is based on recent ETF net inflows, suggesting an imminent rally. With Bitcoin currently trading near $67,000 and showing signs of resilience after a sharp pullback, the stage is set for what could be an unparalleled bull market cycle.

🔮 Future Insiders: Hold onto your hats, because the crystal ball is shining bright for Bitcoin! With strong fundamentals and increasing interest from institutional investors, the potential for further price appreciation in the near future is undeniable.

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References: 1. On-chain data provider CryptoQuant 2. CryptoQuant’s research note 3. The firm entering Bitcoin 4. Reports by Arslan Butt from Blocking.net 5. Follow Us on Google News

Are you excited about Bitcoin’s recent surge? Share your thoughts in the comments and let’s discuss! Don’t forget to spread the word and share this article on your favorite social media platforms. 🚀📈

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