Early on Monday in the United States, Bitcoin experienced a substantial rise, pushing its price above $72,000. This upward trend, representing a 4.5% hike within just five hours, from around $69,500 to a peak of $72,579, can be linked to several factors that have been influencing the cryptocurrency market.
#1 Strong Bitcoin Spot Demand
The Bitcoin rally seems driven by strong buying in the cryptocurrency’s spot market, suggesting the upward trend may last. According to crypto expert Daan Crypto Trades (@DaanCrypto), expressed on platform X, “Funding rates remain strong. A steady advance is preferable. Let’s keep it this way. If long-term investors continue purchasing while the bid for spots wanes, a correction could occur at some point. Presently, everything looks positive.”
As the cost of bitcoin (BTC) on the market continued to climb, information from Coinglass indicated that approximately $40.7 million worth of BTC short positions were terminated. This development served to intensify the upward trend in BTC pricing.
#2 BTC Halving
In about 12 days, or on April 20, the next Bitcoin halving is expected to take place. Previously, Bitcoin’s price has tended to decrease beforehand, only to surge afterwards in the run-up to the halving.
The reduction in new Bitcoins created daily through halving will decrease it from around 900 coins to 450 coins. During a recent interview with CNBC, Anthony Scaramucci of Skybridge Capital discussed the unevaluated impact of this event on Bitcoin’s price increase.
“He expressed doubt over the claim that the Bitcoin halving has already been factored into its current price. In his opinion, there is still room for Bitcoin to grow. At present rates, around $65 million in investments flow into Bitcoin ETFs daily to purchase newly mined Bitcoins. However, this amount only amounts to $32.5 million over a 17-day period.”
The relationship between Bitcoin and gold, regarded as safe investments, is influencing Bitcoin’s price fluctuations. Gold’s robust start to the week, hitting an unprecedented peak of $2,253, has been echoed in Bitcoin’s pricing trend. Notable figures like Peter Schiff (gold advocate) and Michaël van de Poppe (crypto analyst) have observed the synchronicity between these assets, indicating a common surge amid economic instability.
Gold expert Peter Schiff remarked via X, “Gold has experienced significant price swings this Sunday night. Initially, it dropped by $27, but later surged over $45 to reach a new peak above $2,348. This early surge in gold’s price is an indication of a major upcoming adjustment, reflecting heightened expectations for future inflation. It serves as a caution that current monetary policies are excessively lenient.”
Crypto expert Michaël van de Poppe observed: “Looks like it. Gold is starting a large new upward trend, while Bitcoin has returned to $71,000. With commodities showing power and Bitcoin’s current behavior, I believe we’ll approach the record high soon.”
CRG, an esteemed market analyst, drew attention to the importance of Bitcoin’s weekly candle closing above its 2021 high for the second week in a row. This persistent price trend suggests a robustly optimistic outlook among investors.
Great weekly close
Fresh all time highs this week
— CRG (@MacroCRG) April 8, 2024
In the end, the prospect of launching Bitcoin ETFs in Hong Kong has brought renewed excitement to the market. It seems that significant Chinese asset managers, including Harvest Fund and Southern Fund, each managing over $230 billion and $280 billion in assets respectively, are preparing to enter the Bitcoin ETF arena via their Hong Kong branches, once regulatory approval is granted.
Ethena Labs recently began buying Bitcoins through outright transactions to develop a more secure USD synthetics product called “USDe” for their users. This action is generating significant attention and scrutiny within the cryptocurrency community.
Ethena now holds more than half a billion in BTC hedged across Binance, OKX and Deribit
Ready for the halvening ₿
— Seraphim (@MacroMate8) April 8, 2024
At press time, BTC traded at $72,103.
Read More
Sorry. No data so far.
2024-04-08 17:10