Bitcoin Surges Past $71,000: A Look into Rising Prices and Anticipated Halving
Summary:
Bitcoin's value climbs back above $71,000 for the first time since March 15, largely due to optimistic capital inflows in BTC ETFs. Large Bitcoin investors or 'whales' have been consistently increasing holdings, anticipating a future price surge. Upcoming Bitcoin halving and overall positive sentiment among institutional investors have also contributed to the price movement. As analysts and traders eye the next price levels for Bitcoin, the focus shifts towards a potential rise to $100,000.
Since March 15, Bitcoin has climbed back up beyond $71,000, a milestone attributed to a positivity in BTC ETFs capital inflows. In the last day, data from TradingView and Cointelegraph Markets Pro suggests an increase of over 0.55% in Bitcoin’s value, setting a week-long high of $71,582 as of March 26.
Several conditions contribute to Bitcoin's current pricing, notably the anticipated Bitcoin halving, steady Bitcoin ETF inflows, and an overall optimistic sentiment from institutional investors.
Big Bitcoin investors have been building up their stakes in preparation for potential price upswings. Information from market intelligence firm Santiment showed an increase from 23% to 25.17% in the percentage of wallets possessing 1,000 to 10,000 BTC from the beginning of the year to March 26. Comparatively, wallets with 10,000 to 100,000 BTC saw a drastic rise from 11.68% to 12.42% from March 2 to March 21, and a slight drop to current 11.98%.
Reductions in BTC deposits on exchanges have given further support to this accumulated wealth, with an ongoing drop in deposit transactions to recognized exchange wallets seen from March 5, as the BTC’s price crossed the $69,000 mark. Despite a more than 9% price decline to less than $65,000 on March 19, the deposit transactions on exchanges showed a decrease from 109,420 to 55,505 on March 25.
This falling transfer of BTC to exchanges implies a diminished willingness to sell, an indication that is ordinarily bullish. On the contrary, withdrawals of cryptocurrencies from exchanges have seen a surge, with analytics firm Whale Alert noting multiple transactions of large amounts of BTC from exchanges to personal custody wallets in mid-March.
Anticipation of the halving event has also given the Bitcoin price a boost. Market data provider Glassnode suggested that the buying power of ETFs is likely to outdo the traditional supply squeeze resulting from the Bitcoin halving in April. The supply of Bitcoin is increasing due to the decisions of long-term holders and traders should pay attention to their behavior as their actions can greatly impact market sentiment and liquidity.
The halving event refers to when the reward for mining new blocks on the Bitcoin blockchain is halved. Consequently, the post-halving BTC reward given to miners per block will decrease from 6.25 BTC to 3.125 BTC.
Moving forward, Bitcoin traders and analysts are now focusing on the next level for BTC, after its comeback past the $70,000 mark. Approximately 80,000 more BTC was acquired by whales following the price drop to $64,000. This uptick might be pushing Bitcoin back to the $70,000 range.
The current support around $64,000 is relatively stronger compared to the overcoming resistance. Above all, traders are determined to maintain the price beyond $70,000. As per independent analyst Daan Crypto Trades, investors should gear up for a tremendous upswing as Bitcoin aims for $100,000.
This report does not present investment guidance or suggestions. Every transaction or investment comprises risk, and readers should make decisions after conducting their due diligence.
Published At
3/26/2024 8:47:08 PM
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