bitcoin price has now successfully crossed the $59,000 level after an incredibly bullish month of February. The market leader also exceeded all expectations during this time and continued to rise at a time when prices are expected to fall before the next halving.
Institutional investors drive up the price of bitcoin
One of the main drivers of bitcoin's performance over the past day has been institutional investors. These investors have continued to take advantage of the opportunities provided by the bitcoin Spot ETFs approved by the Securities and Exchange Commission (SEC) in January.
While there have been outflows of funds from the Grayscale bitcoin Trust due to concerns about high fees, inflows have not slowed. On Tuesday, Bloomberg analyst James Seyffart revealed that spot ETF inflows surged once again, topping $400 million in a single day.
Similarly, trading volumes have been increasing. With demand on the rise, volumes surpassed $2 billion on Tuesday, the second time in a month this figure has been surpassed. This increase in both inflows and trading volumes shows the willingness of institutional investors to take positions in bitcoin.
Fidelity Investments, one of the issuers of the many bitcoin Spot ETFs available for trading on the market, also recently encouraged investors to put a small portion of their portfolios in bitcoin. According to the asset manager, a portfolio allocation of 1-3% in bitcoin is ideal at the moment.
Now, while a 1-3% allocation may seem small to the average investor, it is quite large when it comes to institutional investing. These portfolios are typically made up of billions of dollars, and even a 1-3% allocation could equate to hundreds of millions of dollars funneled into bitcoin.
btc dominance not moving
While the price of bitcoin has recovered in the last week, it is expected that bitcoin will begin to consolidate and then give way to altcoins. However, btc's dominance over the cryptocurrency market remains quite high, suggesting that the time for altcoins may not be yet.
Currently, btc dominance stands at 54.1% after seeing a local peak of 54.4%. This shows that bitcoin is still leading the entire market by a wide margin, and until this dominance subsides, bitcoin will continue to lead the rally while altcoins lag behind.
For now, the bulls are focusing on holding support at $59,000, giving it a bounce point towards $60,000. With the previous all-time high of $69,000, btc price needs a move of less than 20% from here to reach a new all-time high.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/02/Bitcoin-is-unstoppable-BTC-price-hits-new-all-time-highs-in" alt="Tradingview.com bitcoin Price Chart” width=”3286″ height=”1530″ loading=”lazy”/>
btc bulls push price above $59,000 | Source: BTCUSD on Tradingview.com
Featured image from CBC, chart from Tradingview.com
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