Key Points
- Bitcoin’s price has surged past $71,000, propelled by positive flows into spot BTC ETFs.
- Factors such as Bitcoin whale accumulation, upcoming Bitcoin halving, and strong investor sentiment are driving the price movement.
Bitcoin Price Skyrockets
Bitcoin (BTC) has broken past the $71,000 mark for the first time since March 15. This surge has been fueled by capital flowing into spot BTC ETFs. Over the past 24 hours, Bitcoin has seen a rise of more than 0.55% to reach a weekly high of $71,582 on March 26.
The current price movement of Bitcoin is driven by several factors. These include consistent inflows into spot Bitcoin ETFs, anticipation of the Bitcoin halving event, and positive investor sentiment among institutional investors.
Bitcoin Accumulation and Halving Event
Large Bitcoin investors, also known as whales, have been increasing their holdings in expectation of future price rises. Market intelligence firm Santiment data shows an increase in the percentage of wallets holding between 1,000 and 10,000 BTC from 23% on January 1 to 25.17% on March 26.
This accumulation is supported by a decrease in BTC deposits on exchanges, suggesting a lack of intent to sell. In fact, there has been a surge in the number of whales transferring Bitcoin from exchanges to self-custody wallets. On March 25, a whopping 2,400 BTC worth $169.5 million was transferred from Coinbase to an unknown new wallet.
The upcoming Bitcoin halving event is also boosting Bitcoin’s price. This event, where the reward for mining new Bitcoin blocks is halved, is set for April this year. After the halving, the BTC rewards issued to miners per block will be reduced from 6.25 BTC to 3.125 BTC. As the halving event nears, investors are rushing to secure their positions.
Bitcoin’s Next Price Level
With Bitcoin’s recent rally past $70,000, traders and analysts are now focusing on the next price level for BTC. Data reveals that whales added more than 80,000 BTC when the price dropped to $64,000. This buying appears to be the momentum behind Bitcoin’s move back to the $70K range.
A model from IntoTheBlock shows that BTC sits on relatively strong support around the $64,000 level compared to the resistance it faces in its recovery path. It is clear that traders are determined to hold the price above $70,000. Analysts suggest that investors should be ready for a significant rise as $100,000 becomes the focus for the BTC price.
