Bitcoin Reaches Record High of $72,356 Amid Rising Investor Interest and Optimistic Market Sentiment
Summary:
Bitcoin's value reached a new record high of $72,356 on Coinbase, fueled by inflows to spot BTC ETFs and heightened investor interest. Despite potential economic challenges, Bitcoin's growth, combined with an outflow of the currency from exchanges, reveals strong market optimism. Early trading volumes on March 11 showed a robust start, with a significant amount allocated to Bitcoin amongst crypto assets in 2024. Both institutional and retail investors show increased engagement, providing a bullish outlook for Bitcoin. However, investments and trading carry inherent risks, urging readers to conduct independent research.
The value surge of Bitcoin (BTC) continued unimpeded, establishing a new record high of $72,356 on Coinbase. The cryptocurrency effortlessly exceeded the $71,000 mark, riding the wave of inflows to spot BTC ETFs and escalating investor attraction towards Bitcoin.
Several factors contribute to Bitcoin's price jump today. Spot BTC ETF uptrend adds to the positive market perception. The market capitalization of Bitcoin reaching a historic high has traders in a state of "extreme greed," as evidenced by the Crypto Fear and Greed Index. The greed level registered on March 11 was the steepest observed since February 20, 2021.
Despite numerous potential economic hurdles, Bitcoin continues its relentless march upwards, marked by increasing volatility and heightened open interest. What's surprising is that despite Bitcoin's skyrocketing value, the cryptocurrency continues to be withdrawn from exchanges. On March 11, there were only 2.3 million Bitcoins left on exchanges – the lowest recorded since April 2018.
Bitcoin ETFs pave the way for significant institutional investment flows. The trading volumes for spot Bitcoin ETFs kicked off robustly on March 11, with the opening of U.S. stock markets. Within the first half-hour, BlackRock's spot Bitcoin ETF recorded $500 million in trades, while Fidelity's counterpart saw trades amount to more than $217 million.
Year-to-date, institutional investors have funneled $10.3 billion into the crypto market according to CoinShares. To put this astonishing amount into perspective, crypto products in 2021 broke records with $10.6 billion in yearly inflows. In just the past week, crypto investment volumes achieved a weekly high, ushering over $2.7 billion into the market.
Of the total $11.3 billion injected into crypto assets in 2024, Bitcoin alone attracted over $9.9 billion. Bitcoin holds a lion's share of digital assets under management (AUM), with a whopping $71.8 billion currently in circulation.
It's not just institutional investors that have their eyes set on Bitcoin. Retail investors too are showing heightened involvement in the cryptocurrency, with the number of Bitcoin wallets holding non-zero amounts consistently above 51 million throughout 2024.
Not only are we witnessing an increase in Bitcoin wallets, but consistent monthly price gains mean most addresses are in profit. The burgeoning of non-zero wallets, decline in Bitcoin from exchanges and consistent institutional inflows all signal a strong bullish outlook for Bitcoin.
This article does not provide investment advice or suggestions. All investment and trading moves carry inherent risks, and it is recommended for readers to independently research and arrive at informed decisions.
Published At
3/11/2024 6:46:29 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.