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Bitcoin Reaches Historic Peak at $69K, Reports Forbes Advisor India

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Bitcoin Hits All-Time High Of $69K – Forbes Advisor India

The digital currency Bitcoin, also known by its ticker BTC, has experienced an unprecedented climb, shattering its earlier record highs and establishing a new benchmark at $69,170, with a staggering market cap close to $1.35 trillion. At present, BTC has seen a minor downturn of 1.89% over the past day, as reported on March 6, 2024. At the moment of writing, Bitcoin’s value stands at $65,944, displaying a gradual retreat from its explosive ascent.

Indicated by the cryptocurrency’s Fear and Greed Index now situated in the “extreme greed” territory, Bitcoin’s value has soared to a fresh zenith of $69,170—a historical peak that exceeds its prior high-water mark of $68,789 from 27 months prior. This milestone was reached even before the anticipated Bitcoin Halving event, which many speculate will propel the value of Bitcoin to new monumental levels.

Bitcoin’s Value Soars to a New Two-Year Record at $69,000

After a two-year interlude, Bitcoin’s value has rocketed to a new record of $69,170, spurred largely by the burgeoning interest in Spot Bitcoin ETFs. The approval of these ETFs by the Securities and Exchange Commission at the start of this year has buoyed the market, with the funds experiencing an exceptional accumulation of $6.7 billion. On average, these ETFs are seeing a substantial daily inflow of about $210 million.

Recent price increases have been catalyzed by a growing institutional allocation and enhanced retail engagement, thanks in part to Spot Bitcoin ETFs and the lead-up to the imminent Bitcoin Halving event. Concurrently, these developments coincide with a wider surge in the crypto market, with even Ethereum (ETH) reaching a value of $3,755, marking a leap of 15.05% over the preceding week.

Analyzing the Impact of $520 Million Inflow into Bitcoin ETFs on the Price of Bitcoin

Bitcoin ETFs kicked off last week on a high note, attracting $520 million on Monday, which further swelled to $577 million by Tuesday, an upswing of 10.96%. This infusion, notably led by a $520 million investment in the BlackRock iShares – ETF, has been instrumental in elevating the price of BTC to the $63,000 level earlier than anticipated by the Bitcoin halving milestone.

The BitMEX research highlights that the BlackRock iShare ETF reigns supreme among the Spot Bitcoin ETF sector, with a net inflow of $577 million recently, of which it constitutes $520 million by itself. This occasion marks the third-largest influx since its debut, as all nine Spot Bitcoin ETFs are experiencing robust volume performance.

ETFs have collectively amassed an inflow exceeding $6.5 billion with goldings of more than 141,000 BTC. Fidelity’s Bitcoin ETF and Ark 21Shares have observed net inflows of $126 million and $5.4 million, respectively. Other Spot ETFs are experiencing strong inflows too, hinting at a positive market sentiment and potential bullish momentum. Conversely, Grayscale’s GBTC has seen an outflow of $125.6 million, up from $22.4 million on the preceding Monday, which some view as indicative of a market shift.

Bitcoin, after its remarkable surge on March 5, 2024, achieved an all-time high at $69,170 before the halving event. However, Spot Bitcoin ETFs underwent a slight downturn with net flows retracting from $678.67 million on February 29 to $141.27 million on March 6, 2024, according to a report by “The Block.”

More Than $142 Million in Liquidations Over the Previous Day

Following Bitcoin’s new record high on March 5, 2024, traders initiated profit-taking, leading to an exodus of over $142 million within a single hour.

Based on Spot Market Data, investors did not hesitate to turn their profits into cash, with Binance alone recording over $142 million exchanged for USDT. This indicates a possible apprehension among short-term investors regarding a market pullback, especially after a continuous two-week rally. Subsequent to these sell-offs, Bitcoin’s value fell by about 5%, trading at $66,077 at the time of this account.

Not just Bitcoin, but the entire crypto market experienced significant liquidations post-breakthrough, with an excess of $720 million being liquidated. Meme coins took a significant hit; notable tokens such as Dogwifhat (WIF), BONK, and FLOKI dropped by over 15% following Bitcoin’s peak, despite boasting 100% gains in just a week previously.

As of March 6, 2024, Bitcoin is priced at $66,178, reflecting a 4.61% decline since the previous day, subsequent to its record high.

Is Bitcoin’s Climb to $69,000 indicative of a Bull Run or a Bull Trap?

While Bitcoin’s recent price rally and its new two-year summit at $69,170 could suggest the onset of a bull run, it remains imperative for investors to exercise prudence, especially amidst conflicting market perceptions pondering the possibility of a bull trap versus an optimistic outlook for further growth.

The current boom in the cryptocurrency market necessitates caution from investors due to the potential for rapid volatility, which could dissipate wealth as quickly as it accrued. The last instance Bitcoin prices transcended $57,000 was in 2021; however, this peak presaged a downturn into a protracted bear market. By the onset of 2022, prices had plummeted to $32,987—a drop of nearly 42%. The current market trends present similar features and could ultimately reveal a deceptive bull trap, and certainties remain elusive.

Concluding Thoughts

The recent enthusiasm surrounding the U.S. sanctioning of a Bitcoin Futures ETF has infused an air of optimism throughout the crypto sector. This development has substantially widened the gateway for investors eager to board the Bitcoin express, intensifying both price and demand. This presents investors with an opportune moment to leverage Bitcoin’s upswing, which is buoyed by events such as the Bitcoin halving and the ETH Denison upgrade, albeit with judicious caution. The inherent unpredictability of the crypto market and its volatility history serves as a testament to the need for attentive investment strategies, for the present rally might just mask a cleverly laid bull trap.

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