In the midst of market fluctuation and a widespread sell-off in the cryptocurrency market, Bitcoin (BTC) has compensated for its losses on March 5th, climbing back above the $67,000 level. Before the 7% drop, Bitcoin briefly reached all-time highs, and the market’s movements resulted in liquidations exceeding $1 billion. Observers attribute the selling pressure to profit-taking at historical peaks and miners selling off a portion of their BTC holdings.
$150,000 Bitcoin Forecast
Data shows that despite the overall market downturn, inflows into spot Bitcoin exchange-traded funds (ETFs) remained strong, with BlackRock accumulating over $760 million worth of BTC on March 5th alone. Some analysts suggest that the continued increase in demand from spot Bitcoin ETFs, which see an average daily inflow of $500 million, could sustain Bitcoin’s upward trajectory, especially as the anticipated block reward halving in April approaches.
The block reward halving, which cuts the reward miners receive per block mined in BTC by half, is historically associated with increased scarcity and high demand from both individual and institutional investors.
Alex Adelman, CEO of the Bitcoin rewards application Lolli, has made a significant forecast based on historical trends following previous block reward halvings, suggesting that the price of the largest cryptocurrency could exceed $150,000 next year. Adelman highlighted the ongoing increase in demand and the potential impact of increased scarcity following the block reward halving as key drivers of Bitcoin’s upward price movement.
Crypto Market Shows Signs of Recovery
Following the sharp decline on March 5th, the cryptocurrency market has entered a recovery mode today. Major altcoins like Solana‘s SOL, Cardano‘s ADA, and Ethereum‘s ETH have quickly regained their losses from March 5th, rising by up to 5% or more in just the last hour. However, meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) have yet to recover adequately after losing over 15% of their value.
Despite the temporary market downturn, the continued increase in institutional interest and the strong demand for cryptocurrencies lead market analysts to maintain long-term optimism, particularly for Bitcoin and other altcoins. Bitcoin’s resilience amidst the latest fluctuations reflects its status as the leading cryptocurrency and reinforces confidence in its future growth and adoption.
