Bitcoin’s price has surged back above $70,000, recovering from a period of negative flows into spot Bitcoin exchange-traded funds (ETFs) last week. On March 25, BTC reached an intra-day high of $70,306, up 7.5% in the last 24 hours. This recovery follows a price downturn that saw the cryptocurrency drop as low as $60,771, which was accompanied by negative ETF inflows. The recent surge in BTC price metrics could potentially signal a positive trend. Last week, there were outflows of $904 million into spot Bitcoin ETFs, marking the end of a 7-week cycle of inflows. The outflows were attributed to the recent decline in crypto prices, which resulted in a reduction of total assets under management (AuM) to $88 billion. Bitcoin accounted for 96% of the outflows, totaling $904 million. The large outflows from spot Bitcoin ETFs were likely caused by bankrupt lender Genesis selling GBTC shares. Additionally, Bitcoin’s Age Consumed metric has seen a notable increase, indicating that previously dormant addresses holding Bitcoin are now re-entering circulation and suggesting a revival in network activity. Transaction volume has also surged as a result. Altcoins have performed well in the past week, with notable inflows into Polkadot, Avalanche, and Litecoin. However, Bitcoin has outperformed most altcoins, including Ethereum. The total crypto market currently stands at $1.191 trillion, 43% below its peak in November 2021. The altcoin market still favors the upside, as indicated by the overbought weekly relative strength index. While an altcoin season has not been officially declared, analysts predict that it could be on the horizon, as BTC dominance continues to decrease. The Altcoin Season Index currently sits at 49, and an altcoin season is declared when 75% of the top 50 coins outperform Bitcoin over the last 90 days. It is important to note that this article does not provide investment advice and readers should conduct their own research before making any investment decisions.
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