Key Points
- Bitcoin’s price surged past $70,000, recovering from a downturn influenced by negative inflows into Bitcoin ETFs.
- Altcoins experienced net inflows of $16 million last week, indicating a potential altcoin season.
Bitcoin’s (BTC) price has surged past the $70,000 mark after a week of downturn, spurred by negative inflows into Bitcoin exchange-traded funds (ETFs).
Data shows that Bitcoin’s price rose from an opening of $67,212 to an intra-day high of $70,306 on March 25. At the time of reporting, Bitcoin was trading at $70,268, marking a 7.5% increase over the last 24 hours.
Bitcoin’s Recovery and ETF Inflows
Bitcoin’s recovery follows a period of price downturn that saw the cryptocurrency fall to as low as $60,771. This downturn was supported by negative ETF inflows.
Last week marked the end of a 7-week cycle of inflows into crypto investment products, with investors withdrawing more than $942 million. This was the first outflow following a record 7-week run of inflows totaling $12.3bn.
The large outflows were attributed to the recent drawdown in crypto prices, which wiped $10bn off total assets under management (AuM). Despite this, AuM remained above prior cycle highs at $88bn.
Bitcoin’s Age Consumed Metric and Altcoin Season
Bitcoin has recently seen a significant increase in its Age Consumed metric. This metric tracks the movement of previously idle Bitcoin coins, indicating a revival in network activity.
Altcoins also fared well last week, seeing net inflows of $16m. Large-cap altcoins, including Polkadot (DOT), Avalanche (AVAX), and Litecoin (LTC), outperformed Bitcoin over the last week.
Despite Bitcoin’s 4.5% rise over the same period, it outperformed most altcoins, including Ethereum (ETH). The total crypto market was valued at $1.191 trillion, 43% below the peak reached in November 2021.
The weekly relative strength index suggests that the altcoin market still favors the upside. However, Bitcoin still dominated the market at 51.77%. An altcoin season can only be declared when 75% of the top 50 coins performed better than Bitcoin over the last season (90 days).
