BTC Surges to $70K – 5 Bitcoin Updates This Week!

Bitcoin’s volatility continued into the new week as it reached fresh all-time highs but faced resistance in breaking higher. The battle for price discovery rages on, with selling pressure at psychological price levels and the strong demand from spot exchange-traded funds (ETFs). The influence of ETF buying has surprised many, with even long-time bulls reevaluating their price predictions for BTC/USD. Some believe that the accelerating bull run may lead to a macro price top sooner than expected. The release of US macro data is expected to set the tone for the Federal Reserve’s decision on interest rates. Miners are taking advantage of the current situation to lock in profits before the block subsidy halving in April.

Bitcoin experienced high volatility as it closed the week at a record high of $69,000, only to drop to $67,120 minutes later. The price then rebounded and reached new all-time highs during the Asian trading session on March 11. Traders noted that the price was being held back around the $70,000 level due to a lack of spot bid, while significant bids were seen at $60,000. On-chain data also revealed movement of coins that had been dormant for up to a decade.

The upcoming release of the Consumer Price Index (CPI) for February is expected to induce short-term trading volatility across risk assets, including Bitcoin. The current inflation and Fed policy narratives are conflicting, with markets hoping for interest rate cuts while Fed officials temper expectations. The CPI figures will serve as an important reference point ahead of the next Fed meeting. Other key data releases this week include the Producer Price Index and jobless claims.

Bitcoin market observers are eagerly awaiting the resumption of buying by spot ETFs, which have been instrumental in driving the BTC price upward. Despite reservations, institutions are optimistic about the continued price trajectory. Industry insiders expect major US wirehouses to approve Bitcoin, which could have a significant impact on the price. The first flows from institutional investors are expected in Q2 2024, according to crypto-native asset manager Bitwise.

Miners have been selling their BTC holdings despite the upcoming halving, which will reduce the number of new BTC issued per block by 50%. Outflows from miner wallets have increased since the launch of ETFs in January. Miner revenues have also reached high levels due to the soaring price of Bitcoin. The Puell Multiple, which indicates the value of coin issuance compared to its moving average, is at its highest level in six years, suggesting a macro top may be approaching.

Long-term Bitcoin hodlers are holding onto their coins and not matching the transfer volumes seen in 2021. The largest spike in transfer volume occurred on February 24, but the higher prices have not generated a larger volume of transfers. The net unrealized profit/loss for long-term holders is strong but not indicative of a blow-off top. Bitcoin’s most committed holders typically start selling before the cycle peak.