Bitcoin (BTC) has surged past $71,000, reaching its highest level since March 15, due to an influx of capital into spot BTC ETFs. Over the past 24 hours, BTC has risen by more than 0.55%, hitting a weekly high of $71,582 on March 26. The current price movement of BTC is driven by several factors, including consistent inflows into spot Bitcoin ETFs, the upcoming Bitcoin halving, and positive investor sentiment among institutional investors.
One contributing factor to the rally is the accumulation of BTC by large investors in anticipation of future price increases. Data from market intelligence firm Santiment shows that the percentage of wallets holding between 1,000 and 10,000 BTC has increased from 23% on January 1 to 25.17% on March 26. Additionally, there has been an increase in the number of whales transferring Bitcoin from exchanges to self-custody wallets, indicating a lack of intent to sell and a bullish sign.
The upcoming Bitcoin halving event, scheduled for April, is also boosting the price of BTC. Market data provider Glassdione states that the buying power of ETFs is expected to overshadow the traditional supply squeeze effect typically seen during halving events. The supply dynamics of Bitcoin are increasingly influenced by the actions of long-term holders, and their decisions to sell or hold can significantly impact market liquidity and sentiment.
Bitcoin traders and analysts are now focused on the next level for BTC after surpassing $70,000. Data from IntoTheBlock shows that whales added over 80,000 BTC when the price dropped to $64,000, suggesting that this buying momentum is driving BTC’s move back into the $70,000 range. The In/Out of the Money Around Price (IOMAP) model indicates that BTC has strong support around the $64,000 level.
Overall, traders are determined to hold the price above $70,000, and some analysts believe that the price could potentially reach $100,000. It is important for readers to conduct their own research and exercise caution when making investment decisions, as every investment and trading move involves risk.