Bitcoin's Record Surge: ETFs, Whales, Milestones
London: 11 March 2024 (TraderMade): In a groundbreaking turn of events, Bitcoin has shattered all previous records by reaching an impressive $71,415, marking a historic moment for the world's premier cryptocurrency.
The surge comes just three days after Ether crossed the $4,000 threshold, and the crypto space is buzzing with excitement over these remarkable milestones.
Key Takeaways
- Bitcoin breaches $70K, hitting a historic high of $71,415, signalling a robust 47% monthly surge and setting the stage for the upcoming halving event on April 20.
- Spot Bitcoin ETFs gain traction, amassing 4.06% of the total Bitcoin supply, surpassing $56.9 billion in on-chain holdings, fueled by growing institutional interest.
- Despite Grayscale's GBTC fund outflows, ETFs accumulate 33,000 BTC ($2.3 billion) in a week, with projections suggesting an annual absorption rate of 8.65% of the BTC supply.
- Bitcoin whales increase to 2,107 addresses holding at least 1,000 BTC, showcasing confidence in the cryptocurrency's potential, though still below the February 2021 record.
The Numbers Game
As of March 11, Bitcoin's price ticker proudly displays $71,670, a significant 2.62% increase within the past 24 hours. The cryptocurrency has not only experienced a remarkable 10% surge over the past week but has also witnessed an astonishing 47% rise in the last month.
This surge is particularly noteworthy as it precedes the highly anticipated Bitcoin halving event scheduled for April 20. In this event, mining rewards will be reduced from 6.25 BTC to 3.125 BTC.
Bitcoin's recent success culminated in its highest-ever weekly close of $68,955 on March 10, just days after breaching its previous all-time high of $69,200 on March 5. The cryptocurrency market is in a state of euphoria as Bitcoin continues to redefine the boundaries of its value.
ETFs and Institutional Interest
The driving force behind Bitcoin's bullish momentum lies in the increased institutional interest sparked by the recent launch of spot Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs have rapidly amassed a staggering 4.06% of the current Bitcoin supply, totalling over $56.9 billion in on-chain holdings.
At this rate, projections suggest ETFs could absorb 8.65% of the BTC supply annually. Last week alone, spot Bitcoin ETFs accumulated a substantial 33,000 BTC (equivalent to $2.3 billion), with notable contributions from Grayscale's GBTC fund.
Despite seeing over 10,200 BTC in outflows, Grayscale remains a key player in the institutional investment landscape. Digital asset manager Bitwise anticipates a continued surge in institutional interest, with institutions representing "trillions of dollars in assets" gearing up to invest in spot Bitcoin ETFs by the end of June.
Whale Watching
In the midst of this exhilarating rally, Bitcoin whales are making their presence felt. As of March 9, 2,107 addresses hold a minimum of 1,000 BTC, commonly referred to as whales.
While this is a notable increase, it falls short of the record 2,489 addresses reached in February 2021 when Bitcoin was trading above $46,000. Despite the new highs, Bitcoin whales are holding onto their assets, underscoring confidence in the cryptocurrency's long-term potential.
Conclusion
Bitcoin's surge beyond $70K is not merely a numerical milestone; it represents a paradigm shift in the perception and acceptance of cryptocurrencies, particularly among institutional investors.
The unprecedented success of spot Bitcoin ETFs and the sustained interest from significant players in the financial landscape paint a bullish picture of Bitcoin's future.
As we approach the Bitcoin halving event, the crypto community eagerly awaits further developments, anticipating a continued upward trajectory for the world's leading digital asset.
