What Will Push Bitcoin Even Higher?
Welcome to Today in Markets where we dig into the hottest trends and assets in crypto, highlighting investable opportunities for our paying Bankless Citizens.
📊 All-time high moment. As if lifted towards the heavens by inflows to spot BTC ETFs themselves, Bitcoin’s price ascended upwards by 2% on the US open to hit all-time highs on many exchanges, including Coinbase, where price reached $69,324 per coin!
While celebratory tweets cataloged the moment across Crypto Twitter, elation was short-lived, with BTC unable to hold above all-time highs for even a minute before plunging nearly 10% over the next few hours. What catalysts can push BTC back above all-time highs?
🧐 The Alpha
For Bitcoin, its price, just like that of any asset, is a reflection of underlying supply and demand dynamics.
As spot BTC ETF inflows accelerated throughout February, a supply and demand imbalance resulted in which BTC ETFs (and regular spot buyers) were simply demanding more Bitcoins than miners were capable of producing (and sellers were willing to part ways with). In such situations, price responds by increasing!
The ten spot bitcoin ETFs have blown through $50b in assets.. began life 7 weeks ago under $30b. About $8b of it is from flows, the rest from bitcoin value going up. pic.twitter.com/CZCl4mdd7Y
— Eric Balchunas (@EricBalchunas) March 5, 2024
Coinbase has already surged in popularity during the past month to become the 4th most popular free finance app and 50th most popular free app overall in Apple’s App Store, but Bitcoin surpassing its all-time highs has spawned traditional media coverage and will likely compel external actors to FOMO into crypto assets!
New entrants to the crypto industry will allow Coinbase to continue to gain spots on the top charts and further increase demand for BTC, helping to bolster price.
Source: SensorTower
While recent increases in Bitcoin’s price have been largely attributed to increases in demand, the upcoming reduction in BTC supply from the halving threatens to further exacerbate existing supply and demand mismatches!
45 days to go for the block 840,000. 🫡 pic.twitter.com/yZVo3oPeQL
— Web3_Lord | Potato (@web3_lord) March 5, 2024
Natural catalysts look primed to take BTC price higher and with Bitcoin historically demonstrating the characteristics of a Veblen good, something that becomes more desirable to acquire as its price increases, it may be only a matter of time before Bitcoin moves back above all-time highs!
📈 Chart of the Day
Liquidations exceeded $1B over the past 24 hours as volatile crypto market conditions sniped levered positions on both the long and short ends.
🗣️ Post of the Day
