Bitcoin Hits Record Highs Again

London: 1 April 2024 (TraderMade): Bitcoin is making headlines once again as it sets multiple records at the end of Q1, with anticipation growing for a return to BTC price discovery.

As a leading digital asset of the 21st century, Bitcoin consistently demonstrates its durability and capacity for substantial expansion. Here are five key takeaways from this week's Bitcoin news.

Key Takeaways

• Bitcoin closed Q1 2024 with its highest-ever weekly, monthly, and quarterly close, just below $70,300.
• With the price hovering near its old all-time high of $69,000, the potential for volatile moves is high as Q2 begins.
• Federal Reserve Chair Jerome Powell's remarks and upcoming nonfarm payroll data are expected to impact BTC price action, potentially hinting at future interest rate cuts.
• On-chain data shows long-term Bitcoin holders are increasingly taking profit, indicating a shift in market dynamics.
• Heightened institutional interest is evidenced by the approval of U.S.-based Bitcoin ETFs and Tether's acquisition of 8,888 Bitcoin, making it the seventh-largest BTC holder.

BTC Price Clinches Record Weekly, Monthly, Quarterly Close

Bitcoin bulls had reason to celebrate as the first quarter of 2024 ended with the highest close ever seen. At just below $70,300, the March 31 weekly, monthly, and quarterly close became the highest in history.

While a predictable retracement followed, the cryptocurrency's resilience was evident. Data showed local lows of $68,900 coming hours later.

On short timeframes, BTC/USD remains in a range familiar from last month, with $69,000—its old all-time high from 2021—continuing to be a market focus.

Popular traders like Skew and Rekt Capital have offered cautious optimism, highlighting the importance of maintaining clear trend signals and the potential for Bitcoin to challenge the top of its range.

Powell, Unemployment Lead US Macro Diary

Federal Reserve Chair Jerome Powell's fresh appearance forms a highlight of the upcoming U.S. macro week. Powell, along with other senior Fed officials, will deliver prepared remarks, with markets closely watching for clues about future interest rate cuts.

Last week, Bitcoin appeared to respond positively to Powell's focus on the prospect of interest rate cuts in 2024.

The upcoming nonfarm payroll data, due on April 5, will be a significant factor in BTC price volatility. "Weak" job numbers could boost the odds of an earlier rate cut, fueling risk-asset strength and potentially benefiting Bitcoin.

Bitcoin Long-Term Holders Become Active Sellers

As Bitcoin sets new records on the charts, long-term holders are taking the opportunity to profit. On-chain data shows a fresh peak in realized profits, with both short-term holders (STHs) and long-term holders (LTHs) participating in profit-taking activities.

Last month, as BTC/USD hit all-time highs of $73,700, profit-taking peaked at around $2.6 billion per day, with LTHs accounting for 40% of this. On March 31, realized profits totalled just over $1 billion, with LTHs accounting for nearly half of the tally.

BTC Price "Near Identical" to December 2020

Analytics firm Glassnode unveiled a "remarkable similarity" between the current BTC price action and its previous bull market in 2021.

The market is in a near-identical spot to December 2020 relative to the 2018-21 cycle, challenging the concept that institutional interest has delivered a new BTC price paradigm this year.

December 2020 marked a launchpad moment for Bitcoin, which took off from its prior all-time highs to enter price discovery after first retesting them for around two weeks. This year marks the first instance of an all-time high coming immediately before a block subsidy halving.

Tether Boosts Bitcoin Reserves with Latest Acquisition

Tether, the company behind the USDT stablecoin, acquired 8,888 Bitcoin worth $618 million on March 31. Following the acquisition, Tether's wallet now holds 75,354 Bitcoin, bought at an average price of $30,305, worth around $5.2 billion at the time of writing.

The acquisition came during a time of heightened institutional interest in Bitcoin due to the approval of United States-based spot Bitcoin exchange-traded funds and the upcoming Bitcoin halving. According to Bitinfocharts data, Tether is now the seventh-largest Bitcoin holder in the world.

Conclusion

Bitcoin's recent performance is setting the stage for potentially volatile moves as Q2 gets underway. With multiple records set and anticipation growing for a return to BTC price discovery, the cryptocurrency market is buzzing with excitement and speculation.

As Bitcoin continues to make history, traders, investors, and enthusiasts alike will be closely watching the market for the next big move.