Bitcoin has been on a tear in recent weeks, exceeding key milestones as its price marches higher ahead of its upcoming “halving” event. The top cryptocurrency’s total market value recently crossed $1 trillion once again after its price jumped above $51,000.
TLDR
- Bitcoin’s market cap exceeded $1 trillion as price surged above $51,000
- Crypto market cap neared $2 trillion, with Bitcoin leading the charge past its previous high of $69,000
- Upcoming Bitcoin halving expected to impact supply/demand dynamics and potentially fuel further price increases
- Bitcoin spot ETFs continue gaining traction, bringing more institutional investment into BTC
- Typical bull market patterns like moving average crossovers suggest Bitcoin’s price resurgence is “right on schedule”
The milestone comes on the heels of Bitcoin more than doubling in value after hitting its 2018 lows around $3,100 in December. Propelled by positive investor sentiment and increasing institutional investments, its price then vaulted 20% in the past week to retest its all-time high above $69,000 from 2021.
Several factors are driving Bitcoin’s renewed bull run. The U.S. approval of exchange-traded funds (ETFs) tracking Bitcoin prices has opened the floodgates of institutional money pouring into the space. Several Bitcoin spot ETFs are now trading in the U.S., allowingTradFi investors exposure to Bitcoin returns without having to directly handle cryptocurrency.
U.S. BTC ETFs currently hold 704,339 BTC after seeing net inflows of 85,119 BTC since January 10.
Another massive day yesterday, the largest net inflow to date of 12,806 BTC – pushing BlackRock’s BTC exposure above 100,000 BTC.
Huge! pic.twitter.com/s1dQP41COd
— Vetle Lunde (@VetleLunde) February 14, 2024
Flows into these funds hit record highs in February, totaling over $630 million in a single day. At the same time, the upcoming “halving” event in May 2024 is further stoking a bullish frenzy. The quadrennial event cuts in half the supply of new Bitcoin released to miners securing the network.
With demand increasing but new supply getting cut by 50% to only 3.125 BTC per block, standard economics points to significantly higher prices past the halving. This has held true in previous halvings, with Bitcoin entering parabolic bull runs after past halvings took effect.
Both short- and long-term indicators suggest Bitcoin’s surge is still in its early innings. Popular analyst Rekt Capital noted the timing of Bitcoin regaining its former highs aligns perfectly with previous bull markets following major bottoms. Key exponential moving averages are also flipping to support Bitcoin’s uptrend on short timeframes.
While the road ahead promises to be volatile, Bitcoin’s trajectory is looking increasingly bullish thanks to maturing spot ETF products opening the floodgates of institutional money and the supply-shock halving likely to fuel a frenzy of new “FOMO” interest in Bitcoin.
If history repeats, Bitcoin eying $69K again may just be the start of its next parabolic ascent.
Source: https://blockonomi.com/bitcoin-btc-price-breaches-51k-sets-sights-on-69k-new-all-time-high-as-institutions-clamor-in/