- Recent data indicates a significant liquidity injection into the crypto market, totaling $48.5 billion, marking the largest capital inflow in nearly 2.5 years.
- Investors are optimistic about BTC surpassing its previous all-time high of nearly $69,000, driven by robust demand for Bitcoin ETFs and anticipation surrounding the upcoming halving event.
The recent magnanimous rally in Bitcoin (BTC) and other altcoins has set Satoshi Street on fire. On Sunday, March 3, the Bitcoin (BTC) price surged another 4% moving past $64,000 again for the second time in a week. With a 45% rally in February, Bitcoin (BTC) registered the largest green candle on a monthly timeframe.
There’s a massive liquidity push that’s happening recently with a massive $48.5 billion injected into the crypto market. This is the largest-ever capital inflow in nearly 2.5 years ever since October 2021, as reported by Crypto News Flash.
Crypto analyst Gareth Soloway highlighted a key factor that could propel Bitcoin towards its anticipated milestone. Soloway emphasized the importance of closely monitoring liquidity levels, urging investors to do so with keen scrutiny. In his latest interview, Soloway said:
“If we see an increase in liquidity in the system, it absolutely is on the table [Bitcoin to $100,000 in 2024]. Any sort of increase in liquidity with markets at all-time highs doesn’t allow the Fed to really maneuver because it’s going to keep inflation high. <…> It’s all about that liquidity in the system. Watch it like a hawk”.
The driving force behind this fervor appears to be an unquenchable demand for the largest cryptocurrency token through US-listed Bitcoin ETFs, which commenced trading on January 11th. Over the past year, Bitcoin has surged by approximately 186%.
Since the launch of the US Bitcoin ETFs, which include offerings from firms like BlackRock Inc. and Fidelity Investments, there has been a total of $7.35 billion in net inflows invested into these funds.
Will Bitcoin Price See New ATH Before Halving?
Investors are placing their bets on Bitcoin’s price surpassing its previous record of nearly $69,000, achieved in 2021 during the Covid pandemic. This optimism is fueled by the robust demand for ETFs and the fear of missing out (FOMO) ahead of the anticipated Bitcoin halving later this year. As Crypto News Flash reports, Bitcoin ETFs are likely to witness an even bigger wave going ahead.
Following the halving event, where the mining reward is halved, the coin’s supply growth is expected to decrease, potentially intensifying demand pressures. Hayden Hughes, co-founder of social-trading platform Alpha Impact said:
“Crossing the psychological threshold of Bitcoin’s previous all-time high may take time, but it should only be considered a matter of time until we cross that level given the halving and positive sentiment”.
According to crypto analyst Ali Martinez, a significant support area has formed between the $61,100 to $61,800 range, with over 500,000 BTC transacted within it. If Bitcoin maintains its position above this threshold, it’s likely to ascend towards $65,900, encountering minimal resistance along the way. However, if BTC falls below this support level, a correction might lead it down to $56,970 or even $51,500.
Over 500,000 $BTC have been transacted in the range of $61,100 to $61,800, creating a substantial support area. If #Bitcoin remains above this threshold, it’s poised to climb towards $65,900, given the minimal resistance ahead.
Conversely, should #BTC dip below support, a… pic.twitter.com/Lw2GhkmBET
— Ali (@ali_charts) March 3, 2024
Along with Bitcoin, a similar FOMO is visible in altcoins as well. Investors are rushing to grab Ethereum (ETH) pushing its price past $3,500 before the much-awaited Dencun upgrade, per the Crypto News Flash report.
On the other hand, last week witnessed a strong resurgence in meme coins, with Dogecoin, Shiba Inu, Floki Inu, BONK, etc. recording massive rallies.
