- Bitcoin makes a groundbreaking entry into the $70k zone following the spike in open interest.
- According to reports, the supply of Bitcoin on exchanges has reduced to only 4% of its total supply, hinting at a bullish extension.
In a historic moment for the crypto world, Bitcoin shattered its all-time high as it soared past $70k with unparalleled style and momentum. This surpassed investors’ expectations as the remarkable run seemed to occur earlier than expected as far as the Bitcoin halving is concerned. The groundbreaking mark of $70,973 was reached after a 2% surge in 24 hours and a 12% hike in just seven days.
As of press time, the asset had recorded a 61% surge from year-to-date as it looks set to make a historic entry into the $100k zone. The possibility of the asset reaching $90k from this point has been reviewed by Crypto News Flash.
An analyst known as Crypto Rover disclosed on X that the last time Bitcoin broke its ATH, it extended its bullish run by 20% in 24 hours. With investors expecting this run with bated breath, Bitcoin overtakes the market cap of Silver with a current valuation of $1.4 trillion, just behind Alphabet (Google) which has a market cap of $1.68 trillion.
One notable observation is that the broad market increase has triggered a noticeable increase in crypto futures, particularly in Bitcoin. Data found on March 8 indicates that there was a total of $32.30 billion in open interest with CME leading with $10.07 billion in volume, closely followed by Binance which had $7.21 billion. At that time, Bitcoin’s open interest consisted of 48.2% of the $62 billion recorded across all crypto economy futures.
Bitcoin Spot ETFs Seem to be “Doing the Magic”
Referring to multiple posts by crypto analysts, Bitcoin seems to be benefiting from the spot-based Exchange Traded Fund (ETF) in the United States. According to data, $223 million worth of Bitcoin was purchased by issuers on March 8. This positions the cumulative net inflows since the day of listing to $9.59 billion. From a reliable source, $55.5 billion worth of Bitcoin was backing these spot Bitcoin ETFs. This is said to make up 4% of the Bitcoin total supply.
According to Santiment data, the network was producing an average amount of $45 million worth of Bitcoin per day. Interestingly, the market price is expected to move northward in an explosive manner with the anticipation of the Bitcoin halving and the decline of emissions from blocks.
Another observation is that Bitcoin supply on exchanges has been dwindling since August 2023. As of January 30, 2024, supply on exchanges had reduced from 6.05% in August to 5.4%. This indicates that investors currently prefer to have self-custody of their assets rather than keeping them on exchanges. At press time, only 4% of the total supply was available on exchanges for trading, signaling a bullish extension.
To some analysts, the outflow of BTC from Grayscale’s ETF was part of the earlier market pullback. However, the situation was corrected with the $208 million daily inflow recorded by Fidelity’s Spot Bitcoin ETF.
Commenting on the current market rally, crypto analyst Rekt Capital believes that Bitcoin could lead the crypto market into a “danger zone” where there could be a retracement in two to four weeks before the halving event.
Well, 28 days to 14 days before the halving event gives us a danger zone of some sort. This is a historical danger zone where Bitcoin could potentially local top in its previous rally phase before experiencing its pre-halving retrace. So you can see that this orange danger zone is still quite a ways away. So currently actually, this pre-halving danger zone is 28 days large, so to speak, and we’re around the same amount away from this pre-halving danger zone.
After the halving, several experts including the Rich Dad Poor Dad author, Robert Kiyosaki, expect a bull run as formerly reported by Crypto News Flash.
