$52,000 And Climbing: Bitcoin Eyes New Highs This March, Predicts Top Firm
Bitcoin has been on an absolute tear, surpassing $52,000 for the first time since December 2021. The leading digital asset has already climbed over 23% in 2024, and a major driver of this meteoric rise has been the influx of institutional money entering the space through spot Bitcoin ETFs.
Bitcoins mainstream credibility among traditional investors has been growing since the beginning of February, with ETFs registering between $400 million and $650 million in daily inflows in the past week. At the same time, BTC call options have seen a massive rise.
This bullish sentiment has prompted investors to begin anticipating the moment when BTC would achieve a new all-time high. According to analysts at QCP Capital, a crypto asset trading firm, Bitcoin is set to reach a new all-time high before the end of March 2024.
Top Firm Predicts Bitcoin Can Reach New All-Time High Before April
Bitcoins current all-time high of $69,044 has looked like an insurmountable mountain for the past two years, especially during the prolonged bear market in 2022, which saw BTC trading below $17,000. However, things have changed since that time, and current metrics point to the price of Bitcoin blasting past this price point in the coming months.
This change in sentiment can mainly be attributed to the attention around spot Bitcoin ETFs. Although Bitcoin seemed to struggle behind a sell-the-news event for weeks after these ETFs hit the market, the situation has since turned positive.
According to data from BitMEX Research, Bitcoin ETFs have witnessed massive inflows led by BlackRocks ETFs in the past week. At the same time, outflows from Grayscales GBTC have slowed down. Consequently, the ETFs have received a steady $400 million to $650 million in daily inflows, which works out to 8,000 to 12,000 BTC bought daily.
Notably, trading hit historic highs on February 14th, with the top nine ETFs hitting $1.5 billion in trading volume.
Whats Driving The BTC Price Rally?
QCP Capital credits this increasing institutional investment in Bitcoin as a critical driver of future growth. Analysts expect this inflow to continue as BTC becomes increasingly popular among traditional investors and global liquidity rotates into the spot ETFs, allowing it to break past its all-time high before April.
The analysts also looked at the massive purchases of BTC call options, noting how $10 million was spent in the past week on premiums for $60,000 to $80,000 strikes expiring from April to December. This price point is exciting, as it indicates many investors are already looking forward to Bitcoin breaking past $69,000 in the coming months.
Predictions can be hit or miss, but Bitcoin seems poised to continue its meteoric rise in value. Its also important to note that the next Bitcoin halving, slated for April 2024, is steadily approaching.
Cover image from Dall-E, Chart from Tradingview
Text source: NewsBTC
