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Bitcoin is fluctuating above $73,000, and compared to the past two years, investors’ appetite for risk has significantly increased. This was expected, but the onset of such a rapid buying wave was not anticipated. So, what do market experts predict? Will the rise in cryptocurrencies continue?
High Demand for Cryptocurrencies
Bitcoin‘s price is rising so rapidly that it has reached profitability levels seen on the most bullish days. The demand is very strong, and even negative macroeconomic data has not been able to stop it so far. The latest Glassnode report states;
“This week, the magnitude of Realized Profit locked through on-chain spending reached statistically high levels, trading more than one standard deviation above its long-term average.”
Glassnode suggests this is reminiscent of the 2017 and 2021 bull seasons. However, we are currently in the historical phase before the 2021 rise, and even more unusually, the halving has not yet occurred, making this rise quite abnormal.
So, what’s the reason? The reason for this abnormal surge is the ongoing abnormal demand. According to Cryptoslate analyst James Van Straten, record demand reached $4 billion on March 11th, exceeding issuance. In addition, MicroStrategy and Coinbase are signaling the potential to create more demand with bond issuances close to $1 billion each.
BlackRock and Fidelity’s reserves reached $25 billion in two months from zero. Now, consider that the Bitcoin reserves on exchanges are roughly $140 billion. If this pace continues, we could see a very strong surge that overturns historical data. And thus, six-figure Bitcoin prices could be seen sooner than expected.
Short-Term Bitcoin Predictions
Bitcoin’s price stands at $73,048 at the time of writing. In just 16 days, the price increased by 43%, which has put nearly all investors in a profitable position. The demand remains strong and the price is still near its peak.
However, if selling begins, Bitcoin’s price could fall to $70,700 and $68,400. Beyond that, in the event of extreme selling, investors could see spikes down to support levels between $66,500 and $61,300. The open interest exceeding $35 billion strengthens market makers’ appetite for large liquidation hunts.
