Despite the fact that Bitcoin still needs to rise by about 25% to reach and overcome its previous price high of $69,000, over the past month the first cryptocurrency has shown the impressive growth that the community has been waiting for.. What factors influence the price of Bitcoin and what can we expect from the market in the coming months?
Inflow of money into ETFs
In the first weeks after the long-awaited event – the approval of ETP for Bitcoin in the USA, market volatility was much lower than expected by many experts and community members. Bitcoin did not reach new historical highs, and two weeks after the ETP was approved, it completely lost more than 20% in price.
However, in February, a large influx of capital into spot bitcoin exchange-traded funds began. Since the beginning of the month, the average daily volume of inflows into these ETFs has exceeded $500 million, and at times reached $600 million. As a result, Bitcoin's market capitalization exceeded $1 trillion for the first time in two years, and the price of BTC reached $52,000, a level the market last saw in December 2021.
Upcoming halving
The next Bitcoin halving, a halving of the reward for mining a block on the network, will take place on April 5, 2024. The history of the Bitcoin network has already gone back three halvings and according to historical data, the period of the bear market often coincided with the period between halvings. The price of Bitcoin began to rise several months before the halving and continued to rise after the reward reduction until Bitcoin entered a bear market again.
Apparently, we can observe a similar situation now – the upcoming halving may also put pressure on the price of BTC. However, analysts traditionally differ in their opinions regarding the fate of the Bitcoin price.
Thus, anonymous cryptocurrency analyst MacronautBTC predicts that after halving, the cost of the first cryptocurrency may reach or even exceed $270,000 due to an imbalance of supply and demand. At the same time, trader Kevin Swenson suggests that after the April halving, Bitcoin is able to repeat the trajectory of price fluctuations observed in April and November 2021 and fall in price by more than 25%.
High demand in the USA
Another reason for the dynamic growth of BTC could be the increased demand for the first cryptocurrency from investors in the United States. This assumption can be confirmed by two different factors.
Firstly, the premium index of the largest American exchange Coinbase, showing the difference in the price of Bitcoin between Coinbase and Binance, increased to 0.12, reaching its maximum since May last year. As CryptoQuant analysts note, such growth confirms that US investors are responsible for the buying pressure.. Secondly, 10x Research founder Markus Thielen confirmed that the largest share of BTC growth coincides with trading hours in North America.
The approval of exchange-traded funds for Bitcoin was an important event for the American stock market. Probably, it was this that increased interest in the first cryptocurrency in general.
First player get ready
Based on technical analysis, we can say that BTC has entered a bullish cycle and the next target will be the all-time high of $69,000. In addition, the fear and greed index has been at 72 for several weeks, which indicates a high level of buying pressure among investors. Typically, when this indicator exceeds 90 points, analysts recommend starting to take profits, since “extreme greed” is usually followed by a price drop.
To be ready to make a profit from your BTC savings, you should take care of cleaning your coins before selling them, for example through Mixer.money. Using the “Complete Anonymity” function of Mixer.money, you can completely clear your coins – the user receives bitcoins from large cryptocurrency exchanges with a turnover of 1,000,000 BTC per day. It becomes impossible to trace the origin of coins; such bitcoins are not identified by analytical software as participating in mixing.
For mixing, you can use TOR mirrors, as well as the official Mixer.money bot in Telegram. Clearing coins takes up to six hours, and the maximum service commission is up to 5% through the site and up to 4.5% through the bot + 0.0007 BTC.
Although no one knows exactly how Bitcoin will behave in the coming months, it is safe to say that the price will be volatile under pressure from the upcoming halving and the continued influx of capital into exchange-traded funds. Interest in the first cryptocurrency continues to grow, which means you need to be ready to take profits at any time.