Bitcoin price rally gained significant momentum, reaching an all-time high of $72,356. The Bitcoin price quickly surpassed the $71,000 mark, benefiting from inflows into spot Bitcoin ETF funds and increasing investor interest in Bitcoin. Let’s examine what is expected in the upcoming period with detailed data and significant developments.
Why Is Bitcoin Rising?
As Bitcoin’s market value reached an all-time high, investor sentiment turned to extreme greed, as measured by the Crypto Fear and Greed Index. The level of greed on March 11 was the highest seen since February 20, 2021.
Despite numerous macro headwinds, the Bitcoin price continues to rise with increased volatility and open interest. Despite the rapid increase in Bitcoin price, Bitcoin continues to leave exchanges. On March 11, there were only 2.3 million Bitcoins on exchanges. This indicates the lowest level of Bitcoin held on all exchanges since April 2018.
Noteworthy Data for Bitcoin
When the US exchanges opened, trading volumes for spot Bitcoin ETF vehicles started strong on March 11. Within the first 30 minutes, BlackRock’s spot Bitcoin ETF fund saw $500 million in trades. Fidelity’s spot Bitcoin ETF fund saw over $217 million in trades during the same period.
According to CoinShares data, institutional investors have invested $10.3 billion into the crypto market so far in 2024. For context, the entire year of 2021 set a record with $10.6 billion in inflows into crypto products. Last week, crypto investment products saw a weekly record inflow of over $2.7 billion into the market.
Of the $11.3 billion transferred to crypto assets in 2024, more than $9.9 billion flowed specifically into Bitcoin. The total assets under management (AUM) for Bitcoin currently stand at $71.8 billion, overshadowing other crypto assets.
Institutional investors are not the only group showing increased interest in Bitcoin. The number of wallets holding Bitcoin remained above 51 million throughout 2024.
Not only are there more Bitcoin wallets than ever, but nearly all addresses are in profit due to the consistent monthly price increases.
The increase in the number of wallets with a balance, the outflow from exchanges, and the ongoing institutional inflows indicate strong bullish optimism for Bitcoin’s price.
