Bitcoin Hits Record High of $73.6K as ETFs Boost Demand

Bitcoin experienced another price surge on March 13 before the Wall Street open. Bulls dominated the market, leading to new all-time highs of $73,679 on Bitstamp. The price of BTC had previously consolidated around $72,000, with a brief dip of $4,000, before rising sharply. This mirrored a similar pattern observed earlier in the week, when resistance levels slowed down upward movements. On this particular day, resistance at $73,800 was easily surpassed, indicating a clear path for Bitcoin to reach $80,000. The lack of liquidation levels also suggested that there were minimal obstacles to price discovery.

Financial expert Tedtalksmacro highlighted the significant inflow of institutional money into Bitcoin. This influx of funds surpassed anything seen before, including the impact of the recently introduced spot Bitcoin exchange-traded funds (ETFs) in the United States. Tedtalksmacro predicted that the price of Bitcoin would continue to rise in the coming months due to these inflows. He cautioned, That when such flows reach their peak, investors should consider exiting the market within 2-3 months. The spot Bitcoin ETFs alone recorded a record $1 billion of net inflows on March 12. The iShares Bitcoin Trust from BlackRock accounted for the majority of these inflows. BitMEX Research reported an inflow of 14,706 BTC on the same day – a significant amount that represents a substantial portion of the newly-mined supply in 2024. As of March 13, BlackRock and Fidelity Investments held over 330,000 BTC combined, which is five times more than what miners added.

Bitcoin’s performance suggests a bullish trend in the market fueled by institutional investments. The cryptocurrency continues to break records and test new price levels. It experienced a temporary dip before quickly bouncing back, indicating strong buyer support. Traders and analysts expect the price to continue its upward trajectory and potentially reach $80,000. This positive sentiment is driven by the increasing inflow of institutional money into Bitcoin, which surpasses previous levels, including the impact of spot Bitcoin ETFs. The ETFs have attracted significant investments, with BlackRock’s iShares Bitcoin Trust leading the way. The substantial inflows suggest that the steady rise towards $100,000 is underway, although caution is advised as historic patterns indicate a potential exit window within a few months of peak inflows. Bitcoin’s price surge and the growing institutional interest in the cryptocurrency signal a promising outlook for its future performance.