The Bitcoin Price Continues to Surge, Heading Towards a New All-Time High
Bitcoin has had an exceptional month in February, with its value increasing by over $18,000 in just one month. This positive performance has carried on into March, as the Bitcoin price recently crossed the $65,000 mark for the first time since 2021. As BTC continues to trade in the green, there are high expectations that its performance will continue to improve.
Bitcoin Shows Strong Fundamentals
A recent report from Matrixportโs head of research, Markus Thielen, suggests that the Bitcoin price is set to reach another all-time high this week. The report highlights BTCโs price performance over the past year and specifically in February, when it rose by a total of $18,615 in a single month. Despite the slowdown in Bitcoin Spot ETFs observed towards the end of February, Thielen believes that it hasnโt significantly affected BTCโs bullishness.
The report also notes that institutional buying is not limited to the United States. Other countries, such as Korea, have experienced a significant increase in buying volume, with volumes reaching nearly $8 billion for five consecutive days. Moreover, the buying is not restricted to Bitcoin alone; there are also inflows into altcoins and meme coins.
In addition to these factors, the anticipation of Hong Kong launching its own Spot Bitcoin ETF and BlackRockโs plans to launch a Bitcoin ETF in Brazil further indicate strong demand for BTC. Although there was a decrease in inflows last week, Thielen suggests that if Grayscaleโs outflows continue to decrease and reach between $0-$100 million, it could lead to a further rally for the Bitcoin price.
Thielen also highlights that the United Statesโ growing debt and Bitcoinโs superior macro upside compared to gold contribute to BTCโs bullish potential. He states that Bitcoin has become a better macro asset than gold, as its reaction to changes in interest rate expectations, announcements of wars/conflicts, and other factors has proven to be superior in backtesting.
BTC Price Set to Reach New All-Time High
One of the factors driving the Bitcoin price is the significant decrease in the amount of over-the-counter (OTC) BTC available for large institutions. Spot Bitcoin issuers, like BlackRock, often use OTC desks for purchases to minimize the impact on the price. However, these OTC sellers have reported an 80% decrease in their balances over the past year, from around 10,000 BTC to less than 2,000 BTC.
A similar trend can be seen in exchanges, where balances have declined across major trading platforms such as Binance and Coinbase. In just one month, these platforms saw a total of 48,000 BTC leave their balances.
Considering these developments, Thielen suggests that investors are not sensitive to price at this time. Therefore, it is expected that Bitcoin will reach a new all-time high this week. If this happens, there is a possibility that BTC could reach $70,000 within the week.
Hot Take: Bitcoin Continues its Bullish Run Towards New Heights
The Bitcoin market has been experiencing remarkable growth recently, with Februaryโs surge carrying into March. As the Bitcoin price surpasses $65,000 for the first time since 2021, there is a strong belief that its performance will continue to improve.
Markus Thielen, the head of research at Matrixport, predicts that Bitcoin will reach another all-time high this week. Despite a slowdown in Bitcoin Spot ETFs and decreased inflows, institutional buying is still strong, not only in the United States but also in other countries like Korea. The anticipation of Hong Kong and Brazil launching their own Spot Bitcoin ETFs further demonstrates the increasing demand for BTC.
Factors such as the decreasing availability of OTC BTC for large institutions and declining balances on major exchanges contribute to the bullish outlook for Bitcoin. Investors are not currently price-sensitive, which suggests that Bitcoinโs new all-time high is within reach. If this milestone is achieved, the market could witness BTC hitting $70,000 in the near future.
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