- Bitcoin has surged past $70,500, setting a new all-time high, driven by soaring demand from spot ETFs and scarcity dynamics.
- With institutional investments propelling Bitcoin’s rally and supply shortages intensifying, attention now turns to the possibility of breaching the $100,000 milestone.
Bitcoin, the pioneer cryptocurrency, has once again taken the financial world by storm as it surged past the $70,500 mark, establishing yet another all-time high (ATH). The recent rally, characterized by a 2% increase over 24 hours and a remarkable 12% surge over the past week, underscores Bitcoin’s relentless upward trajectory in 2024.
This historic ascent has not only captivated the attention of investors worldwide but has also triggered a notable uptick in Open Interest (OI) in Bitcoin futures, surging by 3.87% to exceed $34 billion at the time of writing. The fervor surrounding Bitcoin has been further fueled by the robust demand stemming from newly launched spot ETFs in the United States.
On March 8th alone, issuers injected approximately $223 million into Bitcoin, propelling cumulative net inflows to an astonishing $9.59 billion since the ETF listing. Consequently, Bitcoins worth a staggering $55.5 billion are now backing these spot ETFs, accounting for more than 4% of the total Bitcoin supply.
Despite the impressive influx of institutional investments, the Bitcoin network continues to witness a scarcity-driven dynamic, with demand significantly outstripping supply. Data analysis reveals that the network is producing Bitcoins at a mere rate of $45 million per day, while the soaring demand indicates a demand-supply gap of approximately five times.
Moreover, looming factors such as the upcoming halving event, which is expected to further reduce emission rates from blocks, suggest that the supply shortage could intensify soon. Consequently, many analysts foresee Bitcoin’s upward trajectory to persist as institutional and retail investors alike continue to
However, amidst the relentless ascent, Bitcoin’s exchange supply has dwindled, with just over 4% of its total supply available for trading at present. This decline in available supply, coupled with a 100% network profitability, underscores the conviction of long-term holders (LTH) who view Bitcoin not merely as a speculative asset but as a resilient store of value.
Navigating Towards the $100K Threshold
As Bitcoin sets its sights on breaching the $100,000 milestone, the journey ahead remains rife with both excitement and speculation. While the bullish momentum fueled by institutional inflows and supply scarcity suggests a favorable outlook, investors must remain vigilant amidst market volatility and regulatory developments.
Bitcoin’s meteoric rise to $70,000 heralds a new era for the cryptocurrency market, with the prospect of surpassing $100,000 looming tantalizingly close. As the digital gold continues to assert its dominance in the financial landscape, all eyes are on whether Bitcoin will rewrite the record books once again soon.
