Bitcoin surpassed $65,300 on Monday morning, bringing it one step closer to its all-time high of $69K, which was reached in November 2021.
The cryptocurrency asset increased by more than 6% in the last day. Historical gains associated with Bitcoin’s halving event, euphoric sentiment, and institutional buying demand are positioning the asset to surpass its lifetime highs of $69,000 in March.
The crypto markets have had a very bullish influence since the beginning of February. Every day, the volume has been surpassing, demonstrating the extensive participation of market players.
Given that the price of bitcoin is currently settling into a very small range, it is anticipated that the token will soon mirror a prior price movement.
Investors are pricing the direct impact on the supply side of the Bitcoin economy that will result from the impending halving of the crypto asset, which will reduce daily BTC issuance from 900 to 450.
To successfully navigate this landscape, traders must comprehend the implications of this event in the larger market context, considering other significant factors like Bitcoin ETFs. Interest in Bitcoin exchange-traded funds (ETFs) has surged recently, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the way.
At a pivotal point in the institutional adoption of cryptocurrency, the fund broke records by becoming a member of the $10 billion assets under management (AUM) club in a record-breaking seven weeks.
The swift amassing of assets reflects a wider pattern of institutional investors’ growing desire for Bitcoin as they look for ways to gain exposure to the crypto space through conventional investment vehicles.
Vital insights for managing market volatility both before and after market halving are provided by tools such as Glassnode’s data and analytics.
According to the most recent price movement, Bitcoin appears to be preparing for yet another significant breakout and has formally entered a bull market.
Some reports state that OTC desk balances are almost at zero, suggesting that big institutions might begin to accumulate once more. Profit-taking activity has drastically decreased in comparison to the 2021 bull run, which may be another reason to be bullish on Bitcoin.
The record-high open interest in Bitcoin futures on the Chicago Mercantile Exchange is another important indicator of a potentially overheated market (CME).
According to CoinGlass, open interest in CME Bitcoin has increased to an all-time high of $8.66 billion. Together, these elements suggest that there is a strong bullish sentiment surrounding Bitcoin, but investors should exercise caution.