Bitcoin Prices Surge, But Can They Break the $61K Barrier?
The price of Bitcoin has reached the $60K mark, indicating that the current bullish run is driving up prices. This surge is mainly due to strong inflows of funds for Bitcoin ETFs. However, historical data suggests that Bitcoin has rarely surpassed the $61K value. With limited data to support further growth, the market is now questioning whether prices will fall or if the bull run will continue.
Only 0.62% Chance of Staying Above $61K
Data from Glassnode reveals that out of 4973 trading days, Bitcoin has only closed above the $61,000 mark on 31 occasions. This means there is a mere 0.62% chance that it will stay above this level. The data also shows that historically, after a significant bull rally, Bitcoin prices tend to decline.
Influx of Funds Keeps Bitcoin ETFs Afloat
Bitcoin spot ETFs have been experiencing a positive week so far. On Monday, they received an inflow of $520 million, followed by another substantial inflow of $577 million on Tuesday. The initial influx came from the BlackRock iShares Bitcoin ETF, which contributed to the increase in Bitcoin’s price to $60K.
Based on BitMEX Research data, spot Bitcoin ETFs recorded a net inflow of $577 million (or 10,167.5 BTC) on February 27. This was the highest influx ever recorded before their launch. However, Grayscale’s GBTC outflow increased again on Tuesday after falling to $22.4 million the previous day.
Possible Correction in Bitcoin Prices
Bitcoin’s price surged to $60K, just shy of the $68.6K peak set 27 months ago. The 24-hour low was $56,329, while the high reached $60,450. At the time of writing, Bitcoin was trading at $60,406.77, showing a nearly 6% increase in the last 24 hours.
Despite the recent surge, investors are unsure if this bull run can be sustained due to the lack of supporting data. Daniel Yan, co-founder of Matrixport, a cryptocurrency services company, predicts a correction of around 15% by the end of April. However, with daily inflows into Bitcoin ETFs growing consistently, it is possible that these inflows will continue to drive up Bitcoin’s price.
Hot Take: Will Bitcoin Break Barriers or Face a Correction?
The current bullish run has propelled Bitcoin’s price to $60K, but breaking the $61K barrier remains a challenge. With historical data suggesting that Bitcoin rarely stays above this level and predictions of a potential correction in the near future, it is uncertain whether prices will continue to rise or fall.
On one hand, strong inflows into Bitcoin ETFs have been supporting the current surge in prices. However, the lack of extensive data on Bitcoin surpassing $61K raises doubts about its sustainability. Investors are closely watching how Bitcoin’s trajectory unfolds and whether the influx of funds into Bitcoin ETFs will keep pushing prices higher.
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