Bitcoin, the world's largest cryptocurrency, has once again surpassed the $70,000 mark, indicating renewed bullish sentiment in the market. After a period of heavy profit-taking, Bitcoin's resurgence during the first hours of trading in Asia on Tuesday saw it surge over 5%, successfully reclaiming the coveted $70,000 threshold. This rise in Bitcoin price has also boosted the broader crypto market, with altcoins following suit and seeing notable gains.
Bitcoin's recent rally comes amid several positive catalysts propelling its upward trajectory. The approval of Bitcoin exchange-traded funds (ETFs), renewed interest from institutional investors, and anticipation of the upcoming Bitcoin halving event have all contributed to the digital asset's meteoric rise in recent times . However, a brief period of profit-taking pushed the Bitcoin price to around $60,000 before its latest surge.
Bitcoin holds over $70,000; Eyes on $80,000 as your next goal?
Bitcoin surged 161.52% in a year, reaching the level of $70,533, with a market capitalization of $1.39 trillion. according to data from Coinmarketcap. This resurgence is having a ripple effect across the entire cryptocurrency market, with the global market capitalization of the crypto space increasing by approximately 4.7% to $2.67 trillion in the past 24 hours. Additionally, the total crypto market volume saw a massive increase of over 40.8% to $112.11 billion during the same period.
Shivam Thakral, CEO of BuyUcoin, commented on Bitcoin's recent performance. After consolidating for a week, the cryptocurrency crossed the $71,000 mark and is now hovering around $70,000, which acts as a temporary support level. He further noted that the next target for Bitcoin would be the $80,000 level, which if breached could pave the way for a move towards the $100,000 mark.
Analysts are closely watching metrics like Age Consumed, which track the movement of previously dormant Bitcoin addresses. This metric provides valuable insight into Bitcoin activity and sentiment, reflecting the scale of the transfer of long-held coins.
Bitcoin's rally not only propelled its own price higher, but also sent other major altcoins higher. Ethereum, Solana, Dogecoin, Cardano, Avalanche, Shiba Inu and Chainlink are among the top 20 altcoins that have seen gains ranging from 4% to 6% each. Additionally, lesser known altcoins such as Recover.aiBonk, Internet Computer, Pepe, Arweave and Near Protocol saw even larger price increases, with gains of 10% to 15% over the past 24 hours.
Bitcoin's recent surge past $70,000 has reignited investor optimism, with all eyes now on the $80,000 level as the next step. With positive catalysts in play and bullish sentiment prevailing in the market, Bitcoin's potential to reach new highs in the near term seems inevitable.
Bitcoin (BTC) ETFs played a key role
Bitcoin's remarkable rise to $70,000 resulted from an extended rally in mid-October 2023. However, the rally shifted gears on January 11, 2024, when the US SEC approved Bitcoin ETF trading.
Bitcoin ETF Holdings | From January 11 to March 8, 2024. Source: TheBlock
The approval of Bitcoin Exchange Traded Funds (ETFs) fueled investor enthusiasm and propelled Bitcoin into mainstream finance. These ETFs provide institutional and retail investors with a convenient and regulated way to gain exposure to Bitcoin, thereby expanding its investor base and increasing demand. As of March 8, 2024, Bitcoin ETFs have acquired over 790,000 BTC worth over $55 billion at current prices, highlighting the important role of institutional investors in the rally.
Bitcoin (BTC) price in relation to halving cycles
While the $70,000 milestone is undoubtedly a celebration among Bitcoin enthusiasts, it also raises questions about what lies ahead for the world's largest cryptocurrency. Some analysts believe that the price of Bitcoin could rise as institutional adoption accelerates and global economic uncertainties persist. However, the next Bitcoin halving, scheduled for April 19, is now less than 45 days away. Bullish investors are quick to point out that Bitcoin has reached a new all-time high before each of the last 4 halving cycles, and rightly so.
However, it is also important to note that Bitcoin and other proof-of-work (PoW) networks have often suffered significant sell-offs after the halving. If this pattern repeats, the price of Bitcoin could experience a significant decline in the second quarter of 2024.
Bitcoin Could Face More Regulatory Scrutiny
Bitcoin has surpassed $70,000 and now has a market capitalization of over $1.4 trillion, making it a systemically important asset. With over 50 million investor addresses worldwide, regulatory concerns such as taxation, investor protection, and illicit activity could pose significant challenges that could impact the future trajectory of Bitcoin prices. However, the $70,000 mark demonstrates the resilience and sustainability of Bitcoin as a transformative force in the global financial landscape. As Bitcoin continues to redefine traditional finance, its path to widespread adoption and acceptance seems unstoppable.
Asian stocks fell
Bitcoin has reached new highs despite declines in Asian stock indices, such as The Nikkei in Japan And ASX of Australia, which saw a 2% decline after a Reuters report suggested the Bank of Japan could raise its benchmark interest rate above zero this month. Analysts have long feared that the BOJ would be a significant source of uncertainty for traditional and crypto markets. However, the consensus is that any decline in bitcoin will likely be short-lived due to the supply-demand imbalance caused by recent large inflows into US-listed spot ETFs and the upcoming reward halving .