Bitcoin (BTC) surged above $66,000 as Wall Street opened on March 4, despite ongoing outflows from its largest institutional investment vehicle.
BTC/USD 1-hour chart. Source: TradingView
Data from Cointelegraph Markets Pro and TradingView showed that BTC price continued to rise, reaching $66,483 on Bitstamp. The market experienced rapid gains after the weekly close and was up 5% at the time of writing.
Market observers speculated on what could happen next, with some drawing parallels to the events of the previous week when Coinbase, the largest exchange in the United States, crashed after a sudden surge in gains. Venturefounder, a contributor to on-chain analytics firm CryptoQuant, suggested that Bitcoin could follow a similar trajectory this time.
“Almost 1% funding rate and $31 billion of open interest. Get ready for a $69k ETF buying squeeze up, Coinbase circuit breaker, and flash dump in the same day again. Same roadmap as last Monday. Today is easy, the rest of the week will be hard,” he forecasted on X (formerly Twitter).
Keith Alan, co-founder of trading resource Material Indicators, took a more cautious approach and analyzed where Bitcoin could potentially correct. He pointed out the formation of a classic “Cup & Handle” pattern on the macro chart from the all-time high. Alan echoed Venturefounder’s sentiment from earlier.
BTC/USD 1-week chart with “Cup & Handle” pattern. Source: Venturefounder/X
Despite the potential for a correction, Alan acknowledged that the market might ignore psychological pressure and continue to push beyond the record highs of $69,000. He cautioned that the market tends to punish overleveraged traders.
Interestingly, BTC price continued to climb even as outflows from the Grayscale Bitcoin Trust (GBTC) increased. In March, outflows from GBTC reversed the trend seen in the second half of February, surpassing half a billion dollars on March 4.
“Outflows from Grayscale definitely re-accelerating again above $60K,” popular trader Daan Crypto Trades noted in an X reaction, sharing GBTC data from crypto intelligence firm Arkham.
Grayscale Bitcoin Trust (GBTC) BTC holdings (screenshot). Source: CoinGlass
Despite the outflows, GBTC remains the largest Bitcoin investment vehicle based on BTC holdings. As of March 4, it held 428,540 BTC ($28.9 billion) according to data from monitoring resource CoinGlass.
This article is for informational purposes only and does not constitute investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.