In spite of recent challenges, such as a market dip of 2.4% in the last day, Bitcoin has shown its resilience by achieving around 8% gains in the past week. With the crypto market facing turbulence, Bitcoin getting above $70,000 seems very achievable. Therefore, which factors could push BTC to achieve this high milestone? Let’s delve deeper into reasons Bitcoin price could cross $70,000 mark.

1. Resurgence in ETF Inflows

In recent weeks, there has been a slight decline in the global cryptocurrency market, as the spot Bitcoin ETF has seen significant outflows. Nonetheless, there has been a notable shift recently, seen in the first influx of over $378 million in weeks. The upward trend persisted on May 6th, as there was an consecutive influx of $217 million.

Grayscale, a prominent provider of Bitcoin ETFs, recently experienced its first daily increase in funds since the introduction of its Spot Bitcoin ETF on January 11, 2024. This progress is a major achievement for Grayscale, as they had been facing steady outflows of over $17.5 billion in the last four months, according to Coinglass. The unexpected increase in capital in Grayscale’s Bitcoin ETF indicates a change in investor feelings and emphasizes the increasing trust in Bitcoin as an investment option.

The turnaround in Grayscale‘s ETF flow may lead to more investments in the future, as investors become more confident in the stability and potential profitability of Bitcoin investments. This increase in funds could lead to pushing Bitcoin’s price higher, edging it towards the $70,000 mark.

The increase in investment in Bitcoin ETFs indicates a revival in investor enthusiasm, which could lead to a temporary increase in Bitcoin’s value. This increase may be due to a range of reasons, such as investors looking to invest in Bitcoin during uncertain times in the market or taking advantage of perceived chances to buy.

2. Whales’ Accumulation

On-chain data shows a surge of positivity from large Bitcoin investors known as “whales.” According to Glassnode data, whales who possess 100 to 1,000 BTC have notably escalated their buying activity in the past two months, leading to what experts are calling the most intense buying rush in recent memory. This deliberate aggregation indicates that major investors are taking advantage of Bitcoin’s present price points, expecting future value increase.

Even with changing levels of money coming in and out of spot ETFs, the consistent purchasing by large investors shows increasing belief in Bitcoin’s future prospects. While some credit the increase in whale activity to the emergence of Bitcoin ETF issuers, experts believe that the recent surge is due to individual investor strategies rather than institutional participation.

At the the time of writing, Bitcoin price has been trading at $62,426.14, having dropped by 2.46% over the past day. Its 24-hour trading volume has also decreased by 12.54% to reach $25.12 billion.

Conclusion

With Bitcoin staying within the $60,000 to $70,000 range, various positive signals indicate that a surge past $70,000 may happen soon. The increase in ETF investments, Grayscale’s improvement, and whales’ gathering all support a story of rising investor confidence in Bitcoin’s future. Although short-term price changes can be influenced by market factors and changing sentiments, these events set the stage for a possible increase in Bitcoin’s price, moving it towards the $70,000 milestone. Even though Bitcoin’s price changes are famously hard to predict, the current situation is providing a strong argument for optimism among investors. It is uncertain if Bitcoin will surpass the $70,000 milestone.

The post Reasons Why Bitcoin Price May Cross 70K Soon appeared first on CoinGape.

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