Bitcoin, or BTC, has surged, surpassing its previous all-time highs and setting a new record of $69,170 with a market cap of nearly $1.35 trillion. Currently, BTC is down 1.89% in the last 24 hours (as of March 6, 2024). At the time of writing, BTC was at $65,944 and slowly coming off its meteoric rise.
The cryptocurrency’s Fear and Greed Index is in the “extreme greed” range. Bitcoin prices have risen to $69,170, hitting a new all-time high and surpassing the previous high of $68,789 27 months ago. Bitcoin has already hit $69,170 ahead of the highly anticipated Bitcoin halving event, which is expected to push the cryptocurrency to unprecedented highs.
Bitcoin price hits a 2-year high and sets a new record of $69,000
Bitcoin price hits its new record of $69,170 after two years and the increase is due to the market's booming interest in spot Bitcoin ETFs. According to data from Farside Investors, Bitcoin ETFs have risen to a stellar $6.7 billion since the Securities and Exchange Commission gave them approval earlier this year. These Bitcoin ETFs average daily inflows of nearly $210 million.
In recent months, the price increase has been driven by allocation from institutional players and increased participation from retail investors due to spot Bitcoin ETFs and the upcoming Bitcoin halving. Meanwhile, the rise comes alongside a broader rally in the cryptocurrency market. Ethereum or ETH has also hit $3,755 and is up 15.05% in the last seven days.
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How does the inflow of $520 million into Bitcoin ETFs affect the price of Bitcoin?
Last week started brightly for Bitcoin ETFs as they recorded an inflow of $520 million on Monday and rose to $577 million on Tuesday, up 10.96%. This massive inflow was supported by the BlackRock iShares ETF, which alone saw an inflow of $520 million, and led to BTC reaching the $63,000 level well before the Bitcoin halving.
According to BitMEX research data, the BlackRock iShare ETF is currently leading the Spot Bitcoin ETF, which recorded a net inflow of $577 million yesterday and has $520 million alone. This is the third largest inflow since its launch as all nine spot Bitcoin ETFs reported solid trading volumes.
Net inflows into ETFs were over $6.5 billion and asset holdings were over 1,41,000 BTC. The Fidelity Bitcoin ETF recorded $126 million and Ark 21Shares saw a net inflow of $5.4 million. Other spot ETFs also saw solid inflows, indicating strong bullish sentiment and a likely uptrend. Grayscale's GBTC also saw an outflow of $125.6 million, up from Monday's outflow of $22.4 million, fueling hopes of a standard shift.
After an extraordinary price surge on March 5, 2024, BTC reached $69,170, setting a new all-time record before the Bitcoin halving. However, spot Bitcoin ETFs experienced a slight dip, with total net inflows falling from $678.67 million on February 29 to $141.27 million on March 6, 2024, The Block reported.
$142 million liquidated in the last 24 hours
Bitcoin reached its all-time high on March 5, 2024, setting a new record. Soon after, traders liquidated their profits, withdrawing more than $142 million within an hour.
According to Spot Market Data, investors did not wait to reap profits as over $142 million was exchanged for USDT on Binance alone. This suggests that short-term investors feared a correction as the market continued to rise over the past two weeks. Bitcoin fell about 5% after this liquidation and is trading at $66,077 at the time of writing.
This liquidation didn’t just affect Bitcoin; The entire cryptocurrency market has seen over $720 million liquidated since the breakthrough. Meme coins suffered the sharp fallout from this liquidation, as dominant tokens such as Dogwifhat (WIF), BONK, and FLOKI have fallen over 15% since the BTC peak. These three tokens have enjoyed outstanding rallies over the past few months, jumping over 100% in a week.
As of March 6, 2024, BTC price was at $66,178, down 4.61% since yesterday from its all-time high.
BTC hits $69,000 – is this a sign of a bull run or a bull trap?
Whether the rise in Bitcoin prices and reaching its new all-time high at $69,170 after two years is a sign of a bull run or a bull trap, investors should remain cautious at a time when the market has mixed views on the slide Cryptocurrency businesses are trading cautiously in a bull trap and others with a bullish stance on Bitcoin are rising even higher.
The cryptocurrency market is currently doing very well and investors need to be careful as rapid volatility can simply cause money to evaporate just as quickly as it multiplies.
The last time BTC price was above $57,000 was in 2021 when the price peaked and the coin began its reversal into a sustained bear market. By the start of 2022, the price had fallen to $32,987, a decline of almost 42%. The current market has certain similarities and could end up being a bull trap.
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Bottom line
The excessive excitement over the US approval of a Bitcoin futures ETF has led to optimism across the crypto industry. This has opened wide opportunities for investors to jump on the BTC bandwagon, driving up prices and demand.
This is a good opportunity for investors to profit from the Bitcoin surge as it is driven by the Bitcoin halving and ETH Dencun appreciation, but only with extreme caution. As we all know, the crypto market is highly unpredictable and history shows that BTC is extremely volatile, with past price movements suggesting that BTC prices have lost more than a third of their value. The current surge could just be an imaginary bull trap, no one can be sure.
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