Is $70,000 Just Around the Corner?

TLDR

• Bitcoin demand has spiked, with apparent demand growing 177,000 BTC last week
• Bitcoin price is up 11% week-over-week, reaching a 10-week high of over $67,800
• U.S. Bitcoin ETFs continue to see significant inflows, with $458.5 million on Wednesday
• Polymarket bettors give 64% odds of Bitcoin hitting $70,000 in October
• Large investors and whales continue to accumulate Bitcoin

Bitcoin, the world’s largest cryptocurrency, has seen a significant price increase in recent days, surpassing $67,000 and reaching a 10-week high.

This surge comes as demand for the digital asset has spiked, with apparent demand growing by 177,000 BTC in the past week alone.

The price rally has outpaced the broader crypto market, with Bitcoin up 11% week-over-week, compared to the CoinDesk 20 index’s 9.6% increase.

One of the key drivers behind this recent price movement is the continued inflow into U.S. Bitcoin ETFs. These investment products have been consistently attracting new capital, with an average daily inflow of around 9,000 BTC in the first quarter of 2024.

On Wednesday, U.S. Bitcoin ETFs saw another significant day of inflows, totaling $458.5 million. BlackRock’s IBIT product led the pack, taking in $393.4 million.

Large investors, often referred to as “whales,” have also been steadily accumulating Bitcoin. The total balance of Bitcoin whales, excluding exchanges and mining pools, has grown to 670,000 BTC.

This accumulation trend is seen as a positive sign for prices, as it suggests continued confidence in the asset among influential holders.

Technical indicators are also pointing towards potential further price increases. The Bitcoin open interest weighted perpetual futures funding rate recently spiked to a multi-month high of over 0.0136%, signaling increased volatility and new money entering the market.

Prediction markets are reflecting growing optimism about Bitcoin’s short-term price prospects. On Polymarket, bettors are giving 64% odds that Bitcoin will reach $70,000 in October, up 45 percentage points in just one week.

Additionally, there’s a 75% chance assigned to Bitcoin hitting a new all-time high in 2024, according to these predictions.

Analysts at CryptoQuant, led by Julio Moreno, noted that the current apparent demand reading is the largest since late April.

However, they also pointed out that there’s still room for growth, as previous rallies to new all-time highs saw apparent demand peak between 490,000 and 550,000 BTC.

The recent price movement isn’t limited to Bitcoin alone. Other cryptocurrencies, particularly those with strong social media presence, have also seen significant gains.

Dogecoin (DOGE) surged following news of Elon Musk’s $75 million donation to a political action committee and his continued promotion of the “Department of Government Efficiency” (DOGE) on social media platform X.

DOGE saw a 5.8% increase during Wednesday’s Asia trading session, while its Solana-based competitor BONK rose by almost 9%.

As Bitcoin approaches the $70,000 mark, many in the crypto community are watching closely to see if this momentum can be sustained.

The continued inflows into ETFs and the accumulation by large holders suggest there’s still strong demand for Bitcoin. However, as with any financial market, there are no guarantees, and potential investors should always conduct their own research and consider their risk tolerance before making investment decisions.