Key Points
- Bitcoin (BTC) reached new all-time highs of $73,679, hinting towards price discovery towards $80,000.
- Bitcoin exchange-traded funds (ETFs) saw record daily inflows, with BlackRock's product leading the charge.
Bitcoin (BTC) reached new price discovery before the Wall Street open on March 13, overcoming sell-side liquidity.
Bitcoin's Price Surge
BTC's price strength had paused the previous day, consolidating around the $72,000 mark. It even experienced a sudden $4,000 dip before abruptly heading higher.
This market behavior mirrored the start of the week, where resistance kept upside moves in check for a while. On the day, it was $73,800 fulfilling that role, according to data from monitoring resource CoinGlass.
Beyond that, there was little resistance in the way of price discovery towards $80,000, as indicated by the absence of liquidation levels.
"Bitcoin wiped out overleveraged longs, retested the 2021 cycle high & then bounced back to $72,000," a popular trader Jelle summarized, adding that the landscape was now "looking good" for upside continuation.
Record Inflows into Bitcoin ETFs
Financial commentator Tedtalksmacro highlighted the growing wave of institutional money inflows. These now significantly surpassed anything seen previously, even considering the United States' new spot Bitcoin exchange-traded funds (ETFs).
"Fund inflows like we have never seen before. It makes 2020 look small... price will continue to catch up over the coming months," he said. "The steady grind to 100k is underway. Historically, when these flows peak, there's 2-3 months to GTFO of the market."
The ETFs themselves saw a record $1 billion of net inflows on March 12, with BlackRock's product, the iShares Bitcoin Trust, receiving the majority.
"A record 14,706 BTC inflow on 12 March 2024," BitMEX Research noted. That amount alone represents a significant portion of the newly-mined supply in 2024, totaling approximately 65,500 BTC.
The two largest ETFs from BlackRock and Fidelity Investments held more than 330,000 BTC as of March 13 — five times what miners added.
