bitcoin had an incredible month in February, adding more than $18,000 to its value in a single month. This outperformance has continued into March, which saw bitcoin price cross the $65,000 mark for the first time since 2021. As btc trades in the green, expectations persist for the performance to continue.
bitcoin shows solid fundamentals
In a new report shared with NewsBTC via email, Matrixport head of research Markus Thielen stated that bitcoin price was headed for another all-time high this week. This report highlighted btc's price performance over the past year, as well as in February, in which the price rose a total of $18,615 in a single month. Furthermore, the analyst noted that despite the slowdown in bitcoin spot ETFs seen towards the end of February, it has not affected btc optimism much.
The crypto analyst explains that institutional purchases do not only occur in the United States either. There has also been a large increase in purchasing volume in other countries, including Korea, where volumes have reached close to $8 billion for five consecutive days. Interestingly, the purchase is not limited to just bitcoin, as there are also entries of altcoins and meme coins.
Additionally, the anticipation of Hong Kong launching its own bitcoin Spot ETF, as well as BlackRock taking the plunge and launching a bitcoin ETF in Brazil, also shows that there is plenty of demand. So despite the decline in inflows seen last week, Thielen explains that if Grayscale outflows continue to fall, reaching between $0 and $100 million, then he expects a further bitcoin price rally.
Thielen also noted that the US debt is growing exponentially and bitcoin now offers a better macroeconomic advantage compared to gold. This plays into the bullish potential of btc's future.
“We have previously shown that between 30% and 40% of bitcoin ETF inflows appear to come from gold ETFs and, with $80 billion in assets under management, those reallocation flows may continue. We have also shown on numerous occasions that bitcoin has become a better macro asset than gold, as bitcoin's reaction function to changes in interest rate expectations, war/conflict announcements, etc., has become superior (we checked)”.
btc price heads to new all-time high
Among the factors driving the price of bitcoin identified by the analyst was a significant decrease in the amount of over-the-counter (OTC) btc available to large institutions. bitcoin spot issuers, such as BlackRock, tend to use these OTC desks for purchases in order to reduce the impact of their purchases on the price. However, these OTC sellers reported that their balances fell by 80% in the last year, from around 10,000 btc to less than 2,000 btc.
Thielen also notes that the same trend is seen on exchanges where balances have decreased on trading platforms such as Binance and Coinbase. Both, who are currently the world's bitcoin trading powerhouses, saw a total of 48,000 btc leave their balances in one month.
Given this evolution, the crypto analyst explains that investors are not sensitive to prices at this time. So the expectation for this week is for bitcoin to hit a new all-time high. If this happens, then the market could see btc hit $70,000 this week.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/03/Bitcoin-to-Hit-New-All-Time-High-This-Week-Says-Matrixport" alt="Tradingview.com bitcoin Price Chart” width=”3286″ height=”1530″ loading=”lazy”/>
btc price surpasses $65,000 | Source: BTCUSD on Tradingview.com
Featured image from Capital.com, chart from Tradingview.com
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