Bitcoin Price Shoots Past $57,000 First Time in Two Years, BTC ETFs Record Massive Volumes

UTC by Bhushan Akolkar · 3 min read
Bitcoin Price Shoots Past $57,000 First Time in Two Years, BTC ETFs Record Massive Volumes
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BTC whales have been on a buying spree with MicroStrategy adding 3,000 Bitcoins to its kitty on Monday. Bitcoin ETF trading volumes hit all-time high.

Bitcoin, the world’s largest cryptocurrency, has witnessed a solid rally, gaining over 10% in the last 24 hours and shooting all the way to $57,000. Multiple factors, including strong trading volumes for the spot Bitcoin ETFs and the excitement around upcoming Bitcoin halving, contributed to the recent price surge.

Today marks a significant milestone in the realm of cryptocurrency exchange-traded funds (ETFs) as the newly launched Nine Bitcoin ETFs have shattered the all-time volume record. According to insights provided by Bloomberg’s ETF strategist, Eric Balchunas, the collective trading volume surged to an impressive $2.4 billion, narrowly surpassing the previous record set on the first day.

The exceptional performance of BlackRock’s IBIT Bitcoin ETF stands out, which recorded approximately $1.3 billion of the total volume. On Monday, IBIT exhibited a surge of approximately 30%, surpassing its previous record.

Since the launch last month, the nine Bitcoin ETFs have cumulatively registered a total of $6.1 billion in inflows. This indicates a strong demand for the newly launched Bitcoin investment products. Speaking to CNBC, Ryan Rasmussen, analyst at Bitwise Asset Management said:

“Today is settlement day for bitcoin futures, which is contributing to the price jump we’re seeing. We’re approaching the window where we typically see traders positioning themselves ahead of the bitcoin halving, which will happen in the second half of April. I suspect this is the day people start rolling into bullish positions pre-halving.”

On the other hand, the Grayscale Bitcoin Trust (GBTC), valued at $22.8 billion, has witnessed an exit of $7.4 billion in the last 30 days. Notably, since its conversion into an ETF in mid-January, GBTC has not recorded any inflows. However, on Monday, GBTC recorded the lowest single-day outflow at $22 million.

Bitcoin Buying Accelerates Ahead of Halving

The ETF inflows clearly show that big players are building positions ahead of the upcoming Bitcoin halving scheduled in April 2024. On-chain data shows that the Bitcoin whales have also been accumulating massively over the last month. The Bitcoin whale cohort holding over 1,000 Bitcoins has grown considerably.

On Monday, business intelligence firm MicroStrategy announced the acquisition of approximately 3,000 more Bitcoins worth $155 million this month. With this latest purchase, the company’s Bitcoin holdings now stand at around $10 billion.

Top market analysts have already started giving out massive price targets for BTC going ahead. In a notable development for the cryptocurrency market, esteemed trader Peter Brandt has revised his price target for Bitcoin (BTC) amidst the ongoing bullish momentum.

Brandt’s bullish prediction comes amid Bitcoin’s recent breakthrough above the upper boundary of the 15-month channel. Previously set at $120,000, the new target for the culmination of this bullish cycle has been significantly raised to $200,000, reflecting Brandt’s heightened optimism regarding Bitcoin’s price trajectory.

However, Brandt cautioned that this bullish interpretation would be invalidated if Bitcoin were to register a close below the low recorded in the previous week.

This year, Bitcoin has surpassed traditional assets such as stocks and gold in terms of performance. A ratio comparing Bitcoin’s price to that of gold has reached its highest level in over two years.

Bitcoin News, Cryptocurrency News, News
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