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Bitcoin Keeps Pushing Higher With $69K in Sight: Still Time to Join the Rally?

Published 02/29/2024, 07:42 PM
Updated 09/02/2020, 02:05 PM
  • Bitcoin continued rallying and reached its highest level since November 2021.
  • Significant inflows into Bitcoin spot ETFs have set volume records and aided the rally.
  • Beyond ETF success, Bitcoin's upward momentum is linked to the upcoming halving in April and favorable economic data.
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Bitcoin surged for the third consecutive day, approaching the $64,000 mark in early market trading today, marking its highest level since November 2021 as bulls continue their march toward all-time highs near $68,900.

This recent surge can be attributed to familiar bullish factors that have supported the prices in previous weeks, including substantial inflows into Bitcoin ETF spot funds.

BlackRock's iShares Bitcoin Trust (NASDAQ:IBIT) set a volume record for the third consecutive day, with shares worth around $3.3 billion changing hands in a single day.

This is over twice the previous record of $1.35 billion set on Tuesday, which itself surpassed the Monday record of $1.3 billion.

Ten BTC spot ETF funds recorded a total trading volume of $7.7 billion, surpassing the previous record of $4.7 billion set on January 11, the first day of trading.

Eric Balchunas, an ETF fund specialist at Bloomberg, described these numbers as "absurd" and labeled them "madness" in a post on X.


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Source: Eric Balchunas

Will the Fund Inflow Continue to Soar, Pushing Bitcoin Higher?

It appears that this success will likely grow even further as Wall Street giant Morgan Stanley also plans to add Bitcoin ETF products to its brokerage platform.

While billions of dollars have already been invested in these products, their availability through major registered investment advisor (RIA) networks and broker-dealer platforms, such as those associated with Merrill Lynch, Morgan Stanley, Wells Fargo, and others, may further amplify this success.

Halving to Fuel Bullish Sentiment as Well

Bitcoin's price rally and the success of BTC ETF funds are also linked to the anticipation of the upcoming halving in April. This event, which occurs approximately every four years and involves a 50% reduction in mining revenues, has historically had a strong impact on Bitcoin, both in anticipation and aftermath.

In addition to ETFs and halving, it's worth noting that Bitcoin benefited from slightly lower-than-expected U.S. GDP yesterday, which revived expectations for a Federal Reserve interest rate cut. In this context, Thursday's expected PCE price index may have an even greater impact on these expectations.

Key Levels to Monitor for Dip-Buying

Finally, from a chart perspective, the initial crucial support for Bitcoin is the $60,000 threshold, but a correction could go much lower without questioning the bullish sentiment, given the recent surge. Therefore, any BTC declines can be considered buying opportunities, as long as the cryptocurrency does not drop below $55,000.

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