Bitcoin has achieved a broken-through resistance level to achieve an all-time high of $72,242.51. Having achieved a new ATH on March 5, 2024, and dropped to $63.80, BTC price has defied all odds soaring by 13% within six days. The bulls are in celebration and optimistic that Bitcoin will hit $80,000 before halving. So, what drove up Bitcoin price to its peak?

Market Performance of Bitcoin Price

Bitcoin price is trading at $71,947, demonstrating growth of  4.64% in the past day, even though it is slightly below its all-time high of $72,850.71 by 1.33%. After breaking through the milestones, BTC price has soared to 116363188.87% since its launch in 2009. There was also growth in volume by 76.31% to reach $64.64 billion in the past 24 hours. This shows a heightened activity in terms of increased transactions involving bitcoin, whether selling or buying. The increase in prices has pushed the coin to a market cap of $1.42 trillion, positioning it as 1st on CoinMarketCap. Bitcoin has also outperformed silver to become the eighth biggest asset based on market capitalization, according to Companies Market Cap. 

Source: Companie Market Cap

Top Reasons Why Bitcoin Price is Rising

Various factors propelled BTC’s price to its all-time high. 

1. London Stock Exchange Embraces Cryptocurrency

The London Stock Exchange (LSE) is planning to allow the submission of applications for Bitcoin and Ethereum Exchange-Traded Notes (ETNs) in the second quarter of the year. Although the specific release date is still uncertain, this action represents a significant advancement in the acknowledgment of cryptocurrencies by mainstream financial markets. The addition of crypto ETNs to a prestigious stock exchange highlights increasing institutional interest in digital assets and is expected to draw in a fresh set of investors to the crypto market.

2. Increasing Institutional Interest

Increased interest in Bitcoin Exchange-Traded Funds (ETFs) in the US has been linked to Bitcoin price hikes. Since they were launched on January 11, these exchange-traded funds have seen an impressive achievement with the addition of more than $7.5. Various investors, including family offices, venture capital funds, and RIAs, have expressed interest in these ETFs, according to Bitwise’s Chief Investment Officer, Matt Hougan. In addition, Bitwise is presently in negotiations with major organizations that manage trillions of dollars worth of assets, elite wirehouses, and institutional consultants.

The increasing confidence in Bitcoin ETFs indicates their establishment as an acknowledged investment choice in the mainstream financial sector. As a result, significant capital inflows are anticipated from these entities, with projections indicating the second quarter of 2024. 

Hougan expects that in this time frame, significant amounts of capital will likely flow from prominent wirehouses, institutional consultants, and big companies, signaling a positive outlook for the future of Bitcoin.

3. Short-sellers on Edge

Bitcoin Munger, a crypto portfolio manager’s prediction was realized. He asserted that Bitcoin’s price is shooting up because there’s a lot of excitement surrounding the possibility of short sellers getting caught off guard as the price hits $70,000. When short sellers find themselves in trouble, they have to quickly buy back Bitcoin to minimize their losses. This rush to buy can push the price even higher. So, with short sellers potentially facing the squeeze at the $70,000 mark, it was expected that Bitcoin would climb to new record highs.

We likely start the week off with a bang, courtesy of the short sellers looking to get squeezed at $70k.

New highs are incoming. Tick tock! #bitcoin pic.twitter.com/OFiNmlmc9Y

— Bitcoin Munger (@bitcoinmunger) March 10, 2024

4. spot Bitcoin ETF Increased Inflows

Trading volumes for spot Bitcoin ETF vehicles were robust when the U.S. stock markets commenced on March 11. In the initial half hour, BlackRock’s Bitcoin ETF had $500 million in trades. The spot Bitcoin ETF from Fidelity experienced trading volume exceeding $217 million during the same timeframe.

CoinShares data shows that $10.3 billion was invested into cryptocurrency by institutional investors in 2024. In 2021, crypto products achieved a record high of $10.6 billion in inflows for the entire year. During the previous week, crypto investment products experienced a record-breaking influx of over $2.7 billion in funds. More money flowed into short bitcoin positions, with an additional $11 million added last week

Out of the total $11.3 billion invested in cryptocurrency assets in 2024, more than $9.9 billion has been allocated specifically to Bitcoin. Bitcoin’s total assets under management (AUM) surpasses that of other digital assets, standing at $71.8 billion.

Conclusion

In essence, Bitcoin’s recent surge to an all-time high underscores its growing prominence and resilience in the financial landscape, signaling a continued wave of optimism among investors. What Next for Bitcoin Price? Analysts and experts like Guy Turner anticipate Bitcoin’s continued value increase, comparing current cycles to past ones. Turner predicts $80,000 in 2024, reaching $130,000-$180,000 in the future. Leo Mizuhara sees potential for $80K by end of the month, thanks to ETFs.

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Filed under: News - @ January 1, 1970 12:00 am