Bitcoin Bounces Back to $70,000 After Dip
The price of Bitcoin (BTC) experienced a drop to $66,000 earlier in the day but has since rebounded to reach $70,000 once again. As of now, BTC is trading at a price of $69,269.64 with a market cap of 1.36 trillion.
Bitcoin Investors Take Advantage of Dip
During the New York trading session, there has been a significant increase in Bitcoin prices. This surge is attributed to dip buying activity, where investors take advantage of the lower prices and buy more Bitcoin. The demand for spot Bitcoin ETFs is believed to be driving this increase in prices.
- Large-scale purchases of Bitcoin 75,000 calls set to expire later this week have contributed to the rise in prices.
- This surge in call options activity suggests that investors expect Bitcoin to surpass previous highs.
- The Federal Open Market Committee’s (FOMC) dovish stance may also be influencing market expectations.
JPMorgan managing director, Nikolaos Panigirtzoglou, revealed that Bitcoin now has a greater allocation in investor portfolios compared to gold when considering volatility. He noted that when adjusted for volatility, Bitcoin’s allocation is 3.7 times higher than that of gold. Panigirtzoglou also highlighted the significant inflows of over $10 billion into spot Bitcoin ETFs since their approval in January. He suggested that the potential market size for Bitcoin ETFs could reach $62 billion.
Will Ethereum Catch Up?
While Bitcoin is making its way back to $70,000, Ethereum (ETH) has seen a slight increase above $3,700 levels. However, in order to trigger a rally to its new all-time high, the bulls need to push the ETH price above $4,000 once again. The Ethereum derivatives data shows some confidence in this outcome.
- Perpetual contracts, also known as inverse swaps, have a recalculated embedded rate every eight hours.
- A positive funding rate indicates increased leverage demand from traders with long positions.
- ETH funding rates have consistently exceeded 0.03% per eight-hour interval, equivalent to 0.6% weekly.
- In instances of excessive bullish sentiment, these rates can surpass 2.1% weekly.
Despite the correction on March 15, traders in perpetual futures have maintained a bullish outlook for Ethereum.
Hot Take: Bitcoin Bounces Back Amidst Increased Demand
Bitcoin has experienced a healthy bounce back to $70,000 after dropping to $66,000 earlier today. This surge in prices is driven by increased demand for spot Bitcoin ETFs and dip buying activity by investors. Furthermore, Bitcoin’s allocation in investor portfolios has surpassed that of gold when considering volatility. JPMorgan predicts that the potential market size for Bitcoin ETFs could reach $62 billion. While Bitcoin makes its way back up, Ethereum needs to break above $4,000 to trigger a rally to its new all-time high.
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