2024-3-26 15:30 |
In the latest Bitcoin news investors had reason to celebrate as a new week started. After a 10-day dip, Bitcoin has surged back above $70,000. The renewed vigor in BTC’s price action signals a resurgence of momentum as the market continues to climb, with bulls now looking for fresh new highs and price discovery.
Source: Brave New Coin Bitcoin Liquid Index
As the last week of March commences, Bitcoin finds itself on the cusp of fresh all-time highs. The sudden resurgence of Bitcoin starkly contrasts with the somber atmosphere of the previous week, characterized by significant losses. The retracement from the recent peak near $73,000, reached 17% at one point, induced anxiety among traders. Although this correction remains relatively modest by bull market standards, it triggered apprehension across the market.
However, Monday’s rally hinted at a potential conclusion to the recent downturn in the cryptocurrency market. Last week, Bitcoin experienced a dip below $61,000 from its record highs above $73,000. Additionally, there was subdued interest in new U.S.-listed spot bitcoin ETFs, coupled with increased selling of Grayscale’s GBTC fund. Nonetheless, the robust surge on Monday suggested a shift in sentiment, potentially marking the end of the correction phase.
$1 Million BTCCathie Wood, the CEO of Ark Invest, has hailed Bitcoin as a “financial superhighway,” highlighting its pivotal role in emerging markets. Speaking at the Bitcoin Investor Day conference in New York, Wood emphasized the significant use cases of the cryptocurrency, particularly in regions facing economic uncertainties.
Wood, whose firm recently launched a spot bitcoin exchange-traded fund (ETF) called ARKB, underscored Ark Invest’s focus on emerging markets and the global macroeconomic landscape. She noted the impact of the U.S. Federal Reserve’s interest rate hikes on the worldwide macro environment, describing it as a shock to the system.
Addressing the challenges faced by countries like Nigeria, where Bitcoin adoption is high due to currency depreciation, Wood characterized Bitcoin as both a risk-off and a risk-on asset. She highlighted Bitcoin’s appeal as a safe haven in times of economic turmoil while also acknowledging its potential for growth in risk-seeking environments.
Ark’s spot bitcoin ETF has emerged as one of the top performers among the ten funds launched in January. Wood expressed optimism about the future of Bitcoin, suggesting that with increasing institutional participation, the cryptocurrency’s price could soar above $3.5 million. However, she refrained from providing a specific price target, emphasizing instead the long-term potential of Bitcoin.
“Bitcoin has miles to go,” Wood remarked, referencing her previous price target of $1.5 million. Her comments reflect the growing confidence in Bitcoin’s trajectory and its ability to navigate the evolving landscape of global finance.
Earlier this month in an interview with the New Zealand Herald, Wood unveiled updated expectations for institutional involvement in Bitcoin’s price growth. She highlighted the transformative impact of the United States’ first spot ETFs on Bitcoin, emphasizing that even ARK Invest has adjusted its bullish stance on the cryptocurrency. The recent regulatory approval from the U.S. Securities and Exchange Commission (SEC) for ETFs has accelerated the timeline for Bitcoin’s price appreciation, according to Wood.
Ark’s price forecast has been $1 million per BTC by 2030. The forecast has been brought forward. “That target was before the SEC gave us the green light, and I think that was a major milestone, and it has pulled forward the timeline,” Wood explained. “Our target is now above that; it’s well above that, and with our new expectations for institutional involvement, the incremental price that we assume for institutions has more than doubled,” she revealed.
Wood’s sentiments were echoed by MicroStrategy’s Executive Chairman Michael Saylor, who emphasized to CNBC, Bitcoin’s potential to surpass gold as a store of value. Saylor announced his company’s purchase of an additional 9,245 bitcoins, bringing MicroStrategy’s total holdings to 214,246 BTC, more than 1% of the total supply.
Source: X
With the price increase, Bitcoin’s market cap surged above $1.3 trillion, making it the world’s ninth most valuable asset and equal to silver in market capitalization. However, it still has a considerable gap to bridge before catching up to gold, which boasts a market cap of $14.7 trillion.
In other Bitcoin news ETFs Continue To Drive BTC PriceBitcoin’s strength should be matched by new ETF inflows this week, after a quiet week last week, marked by steady outflows. These were driven by record outflows from the Grayscale Bitcoin Trust (GBTC), due to selling by bankrupt crypto lender Genesis. Now, commentators are hoping for a return to “business as usual.”
Bitcoin’s record price run completes an impressive comeback after a brutal bear market and an unfortunate string of bankruptcies, and fraud cases during the past two years. Most other cryptocurrencies, including memecoins have also benefited from the rally across the crypto market.
The run back to new all-time highs was triggered by the approval of a number of Bitcoin Spot ETFs in the U.S. offered by big financial names such as Fidelity and BlackRock. Eric Balchunas, Bloomberg ETF analyst said, “Today is a big moment for Bitcoin but I’d argue just as big a moment for ETFs. The move from 25k to 69k was all or close to all due to ETF approval hopes and/or flows and arguably warranted IMO, ETFs (and its ecosystem) so damn good at taking something and making it liquid, cheap, convenient and standardized. Both the ETFs and Bitcoin mutually benefit one another.”
Source: Bloomberg
Also of note, is that this is the first time that Bitcoin has achieved a new all-time high before the Bitcoin halving event. Popular Technical analyst Rekt Capital said, “In previous cycles, BTC/USD took around 500 days to hit new all-time highs after a halving. Something to consider as we enter a new era for Bitcoin’s price action — we’ve never really seen price action like this before.”
Trump and Ackman Soften StanceIn a surprising turn of events, former U.S. President Donald Trump voiced support for Bitcoin during a CNBC appearance, acknowledging it as an “additional form of currency.” He said, “There has been a lot of use of that [bitcoin] and I’m not sure that I would want to take it away at this point.”
Trump’s remarks mark a notable shift from his previous characterization of Bitcoin as a “scam” that threatened the U.S. Dollar. He also hinted at the need for regulation to address Bitcoin’s growing influence.
Meanwhile, Bill Ackman, founder and CEO of Pershing Square Capital Management, offered a speculative take on Bitcoin’s future, envisioning a scenario where its price could skyrocket indefinitely. Ackman’s comments sparked a lively debate within the Bitcoin community, with Michael Saylor inviting him for a direct discussion on the topic.
As Bitcoin continues its upward trajectory, fueled by institutional interest and changing perceptions, the cryptocurrency landscape remains dynamic and ripe with potential. Investors eagerly await further developments as Bitcoin aims to solidify its position as a mainstream asset class.
Google Search Trends Are UpGoogle Search Trends for Bitcoin have increased sharply this month after Bitcoin reached new all-time highs. Data shows that worldwide searches for Bitcoin are the highest they have been since June 2022, but they are yet to hit the highs seen in the 2021 bull market.
In previous bull markets, Google Search Trends have increased sharply while the Coinbase app has made it to the number 1 spot in the Apple App Store at the peak of the market, a good indicator of a potential top. Coinbase is currently ranked at 290, up from 328 last week.
A Word of CautionFinally, a note of caution from BlockTower’s CEO Ari Paul. Paul wrote on X last week, “Every crypto cycle, I turn pessimistic Cassandra around here (in public warnings). My best guess is that today equates not to October 2021, but more like January 2021. Still think we have 4 innings left in the 9 inning bull market, but… time to start steeling the backbone and psychologically preparing to do a really hard thing – to turn bearish when (almost) everyone is losing their minds as max bullish and the news is purely positive. And also worth noting… we’re *already* in a bubble by many metrics. Plenty of risks already, particularly in more speculative plays. For clarity – I’m just starting to *prepare* psychologically to be bearish. The right time might be 2 years away, but I find game-planning and ‘practicing’ contrarian thinking to be critical to making the right contrarian call in real-time.”
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