The month of February was monumental for Bitcoin, with its value surging by over $18,000. This impressive performance has spilled over into March, pushing the Bitcoin price past the $65,000 mark for the first time since 2021. Many analysts, including Markus Thielen, the head of research at Matrixport, are optimistic about Bitcoin’s future price trajectory. Thielen predicts that Bitcoin is poised to reach another all-time high this week, citing the strong performance over the past year and the significant rise in February.
Thielen notes that institutional interest in Bitcoin is not limited to the United States. Countries like Korea are experiencing a surge in buying volume, with daily volumes exceeding $8 billion for five consecutive days. Moreover, the demand for Bitcoin is not restricted to the flagship cryptocurrency alone, as altcoins and meme coins are also attracting inflows. The anticipation of Hong Kong launching its own Spot Bitcoin ETF and BlackRock venturing into the Brazilian market with a Bitcoin ETF further underscores the global demand for cryptocurrencies.
One of the key drivers of Bitcoin’s price surge is its appeal as a macro asset compared to traditional assets like gold. Thielen highlights the exponential growth of the United States debt, positioning Bitcoin as a more attractive investment option with superior macro upside potential. He points out that a significant percentage of Bitcoin ETF inflows are coming from Gold ETFs, indicating a shift in investor sentiment towards cryptocurrencies.
Thielen identifies a crucial factor contributing to the bullish outlook on Bitcoin: a noticeable decrease in the availability of over-the-counter (OTC) BTC for large institutions. Spot Bitcoin issuers like BlackRock rely on OTC desks to execute large purchases discreetly and minimize price disruptions. However, OTC sellers have reported an 80% decline in available BTC over the past year, limiting the supply for institutional buyers. Additionally, major exchanges such as Binance and Coinbase have experienced a significant drop in their BTC balances, further tightening the supply dynamics.
As Bitcoin continues to demonstrate resilience and bullish momentum, investors are becoming less sensitive to price fluctuations. Thielen believes that the market sentiment is strongly in favor of Bitcoin achieving a new all-time high in the near future. If this milestone is reached, Bitcoin could potentially surge towards the $70,000 mark this week. With growing institutional interest, diminishing supply, and favorable macroeconomic conditions, Bitcoin seems poised for further price appreciation.
Bitcoin’s recent price surge to over $65,000 signals a continuation of its upward trajectory. Institutional buying, global interest, comparative advantages over traditional assets, and supply dynamics all point towards a favorable outlook for Bitcoin’s price growth. As the cryptocurrency market matures and gains broader acceptance, Bitcoin’s role as a leading digital asset is solidified. Investors should conduct their own research and exercise caution when navigating the volatile cryptocurrency landscape.
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