Bitcoin (BTC) supporters on the social media platform X have been expressing their optimism as the price of BTC continues to soar, approaching a new all-time high of $69,000. At the time of writing, Bitcoin is trading at $68,300, reflecting a 7% increase over the past 24 hours, according to CoinGecko.
One topic of discussion among Bitcoin enthusiasts has been the behavior of the cryptocurrency after reaching a new all-time high. Bitcoin analyst Dylan LeClair highlighted a historical event in March 2013 when Bitcoin’s price surged 158% in a month, doubling in just 10 days. A similar pattern occurred in November 2013, as Bitcoin climbed from $200 to $1,000 after surpassing its previous all-time high.
Another notable example is from December 2020, when Bitcoin broke its previous high of $19,665 on December 16th and doubled its value in just 23 days, reaching $63,580 by April 14, 2021, a three-fold increase in 120 days.
Interestingly, these price surges occurred before the Bitcoin halving events. Jaran Mellerud, a founder and chief strategist at HashLabs Mining, believes that Bitcoin’s upcoming halving, scheduled for April 20, 2024, could lead to another significant surge in the cryptocurrency’s price.
The Crypto Fear & Greed Index, which measures market sentiment, currently stands at 90 out of 100, indicating extreme greed among investors. This is the highest score since February 2021. Additionally, there has been a resurgence in Google searches for “Bitcoin” as its price surpassed $50,000 and $60,000.
The recent surge in Bitcoin’s demand can be attributed to the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs have already attracted $7.35 billion in net inflows since January 11th, according to BitMEX Research. The iShares Bitcoin Trust (IBIT) by BlackRock has been the best performer, reaching $10 billion in assets faster than any other ETF in US history.
U.S. investor Ric Delman predicts that Bitcoin ETF flows will reach at least $150 billion by the end of 2025, citing a survey that reveals 77% of independent financial advisors want to add Bitcoin to their portfolios. This demand for Bitcoin ETFs is expected to increase further once major wirehouses start offering Bitcoin ETF trades.
The growing demand for Bitcoin is evident in the ratio of Bitcoin bought by ETF issuers relative to the Bitcoin mined. Some days, this ratio exceeds 10, indicating that demand is surpassing supply. Matt Hougan, the chief investment officer of Bitwise, describes this dynamic as “off the hook” and believes it will push Bitcoin’s price substantially higher.
Bitcoin’s rise in value has also propelled it to become the ninth largest asset by market cap, with only a 0.9% difference from surpassing Silver. Additionally, Bitcoin has recently surpassed the Swiss franc in terms of market capitalization, solidifying its position as a major player in the world of currencies.
Overall, Bitcoin’s price surge, coupled with increasing demand from ETFs and institutional investors, suggests a promising future for the cryptocurrency. As it continues to gain recognition and outperform traditional assets, Bitcoin’s potential for further growth remains high.