The Price of Bitcoin Consolidates as Bulls Fight Off Bear Action
The price of Bitcoin (BTC) has entered a defined consolidation phase after experiencing a sell-off that caused it to drop from its All-Time High (ATH) of $70,083.05 to a low of $61,442 over the past week. However, despite this dip, Bitcoin is currently priced at $69,548.88 and has registered a 1.64% growth in the past 24 hours as it attempts to breach the $70,000 mark once again.
Bitcoin Price and ETF Momentum
One of the key factors contributing to Bitcoinโs growth is the spot BTC ETF. The Bitcoin Order Book currently shows that there are less than 150 BTC available for purchase at the $70,000 valuation on Coinbase. This scarcity is expected to increase in the coming week as spot Bitcoin ETF issuers, such as BlackRock, Fidelity Investments, Ark Invest, and Bitwise, are on track to add 5-10,000 BTC to their portfolios.
โThe Bitcoin order book is very thin. There is no sell wall to speak of (less than 150 BTC for sale on Coinbase to $70,000), considering that the ETFs will need to buy 5-10,000 BTC tomorrow.โ
This supply squeeze created by spot Bitcoin ETF issuers has led to unprecedented scarcity and is driving up the price of Bitcoin to new heights.
Bolstering Current Price Discovery
With Bitcoin looking to form long-term support at the $70,000 level, experts believe that it is currently in a price discovery mode where the potential top is difficult to determine in the short term. In the past week alone, spot Bitcoin ETF issuers have acquired as much as 33,000 BTC, including Grayscale Investmentsโ outflow. If this proportion is maintained in the coming week, it could drive a bullish sentiment that not only helps Bitcoin regain its ATH but potentially sets a new one at $80,000.
The liquidity crunch is expected to intensify with the upcoming Bitcoin halving event, which will occur in 37 days. During this event, the amount of Bitcoin issued to miners daily will be cut in half from 6.25 BTC per block to 3.125 BTC. This reduction in supply, coupled with the potential high demand from spot Bitcoin ETFs, could help push the price towards the $300,000 target set by โRich Dad Poor Dadโ author Robert Kiyosaki for this year.
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