In February, Bitcoin experienced an impressive surge, gaining over $18,000 in value in just one month. This momentum has carried over into March, with the price of Bitcoin crossing the $65,000 mark for the first time since 2021. As BTC remains in the green, there are high expectations for its continued performance.
According to a report by Markus Thielen, the head of research at Matrixport, Bitcoin is on track to reach another all-time high this week. Despite a slowdown in Bitcoin Spot ETFs towards the end of February, institutional buying remains strong not only in the United States but also in other countries such as Korea. In fact, buying volumes in Korea have consistently exceeded $8 billion for five consecutive days. It’s not just Bitcoin that is attracting attention, as there is also increased interest in altcoins and meme coins.
The anticipation of Hong Kong launching its own Spot Bitcoin ETF and BlackRock planning to launch a Bitcoin ETF in Brazil demonstrate the significant demand for Bitcoin. Despite a slight decrease in inflows last week, if Grayscale’s outflows continue to decline, the stage is set for further price rallies for Bitcoin. Thielen also highlights the growing United States debt, stating that Bitcoin now offers better macro upside potential compared to gold.
One of the key factors behind the current bullish trend in Bitcoin is the significant decrease in the amount of over-the-counter (OTC) BTC available for large institutions. Institutions like BlackRock often use OTC desks for their purchases to minimize the impact on the price. However, OTC sellers have reported an 80% decrease in their BTC balances over the last year. This trend is also visible on exchanges like Binance and Coinbase, where balances have decreased significantly.
With these developments in mind, investors are not overly concerned about price sensitivity at the moment. The prevailing expectation is that Bitcoin will set a new all-time high this week, potentially reaching $70,000. The outlook for Bitcoin remains positive, with strong institutional interest and favorable macroeconomic factors driving the price higher.
The current bullish trend in Bitcoin is supported by a combination of institutional buying, global demand, and a decrease in available BTC for large institutions. With market expectations pointing to a new all-time high in the near future, Bitcoin continues to demonstrate its strength as a leading digital asset. Investors are advised to conduct their own research and exercise caution when considering investment decisions in the volatile cryptocurrency market.