- Bitcoin breaks $72,500, fueled by halving anticipation, institutional interest, and more.
- Whales accumulate Bitcoin, with 60% of positions on Binance being long.
Bitcoin, the leading cryptocurrency by market capitalization, has achieved a new all-time high, surpassing the $72.5 K mark. This significant milestone comes after a week of bullish momentum, with Bitcoin’s price jumping from $66,000 to its current trading price of approximately $71,947, marking a 5% increase. The trading volume has seen a remarkable 76% surge, reaching $64 billion, while the market cap has expanded by 5% to hit the $1 trillion threshold.
This upward trajectory is largely attributed to the anticipation of Bitcoin’s fourth halving event, slated to occur in roughly a month. Moreover, it is also being supported by growing institutional interest, as evidenced by the Chicago Mercantile Exchange (CME) reporting a record-breaking open interest of over $10 billion in its Bitcoin futures contracts. This indicates a doubling of interest since the start of 2024, with CME’s futures contracts now accounting for more than 30% of investments in Bitcoin derivatives.
Further fueling the rally are the newly launched spot Exchange-Traded Funds (ETFs), which have made Bitcoin more accessible to institutional investors. These ETFs have recorded a cumulative trading volume of $7.69 billion since their debut, with nearly $9.59 billion worth of Bitcoin backing them as of March 8th.
Meanwhile, data from Glassnode reveals an increase in Bitcoin holdings among whales (entities holding at least 1,000 coins), which grew by 6% year-to-date. This accumulation trend has been a contributing factor to Bitcoin’s price surge. Additionally, around 60% of whale positions on Binance were long, indicating a strong belief among institutional investors in Bitcoin’s potential for further price increases.
Bitcoin Historical Rally Ahead?
Amidst these developments, analyses of Bitcoin’s price movements paint a bullish picture. The daily chart shows a bullish trend, with the 9-day EMA currently positioned below the trading price at $68066. However, the daily relative strength index (RSI) suggests an overbought condition at 78.
If the bulls take over, BTC might again create another outstanding New ATH, surging above $75000, conversely if the bears take over, it might go down to $67356 and $64880.
