Bitcoin (BTC) has surged above $71,000, reaching its highest level since March 15, driven by positive inflows into spot BTC exchange-traded funds (ETFs). Over the past 24 hours, BTC has risen by more than 0.55% to hit a weekly high of $71,582 on March 26. Several factors are contributing to this price movement, including increased accumulation of BTC by large investors, the upcoming Bitcoin halving event, and positive sentiment among institutional investors.
Data from market intelligence firm Santiment shows that the percentage of wallets holding between 1,000 BTC and 10,000 BTC has increased from 23% on January 1 to 25.17% on March 26. Additionally, the percentage of wallets holding between 10,000 BTC and 100,000 BTC saw a sharp spike from 11.68% on March 2 to 12.42% on March 21 before slightly dropping to 11.98%. This accumulation of BTC is supported by a decrease in BTC deposits on exchanges, indicating a lack of intent to sell.
Furthermore, there has been an increase in the number of whales transferring Bitcoin from exchanges to self-custody wallets. On March 25, one holder transferred 2,400 BTC, worth $169.5 million, from Coinbase to an unknown wallet, while another withdrew 4,797 BTC, worth about $339 million, from Coinbase to an unknown wallet. These movements suggest a bullish sentiment among large investors.
The upcoming Bitcoin halving event, set for April, is also contributing to the price increase. Market data provider Glassnode suggests that the buying power of ETFs will overshadow the supply squeeze effect expected from the halving. Glassnode analyst Marcin Miłosierny emphasizes the influence of long-term holders (LTHs) on the supply dynamics of Bitcoin and advises traders to closely monitor their activity. After the halving, the BTC rewards issued to miners per block will be reduced from 6.25 BTC to 3.125 BTC.
Bitcoin traders and analysts are now focusing on the next level for BTC after its rally above $70,000. Whales added more than 80,000 BTC when the price dropped to $64,000, indicating strong support at that level. The In/Out of the Money Around Price (IOMAP) model shows that BTC faces resistance on its path to recovery but has relatively strong support around $64,000. Analysts believe that the price could continue to rise, with $100,000 becoming the focus for BTC.
Overall, Bitcoin’s price surge is driven by positive inflows into spot BTC ETFs, increased accumulation by large investors, anticipation of the Bitcoin halving event, and positive sentiment among institutional investors. Traders and investors are closely monitoring these factors and positioning themselves for potential further price increases.