Bitcoin Market Cap Hints at Potential Price Surge After Retesting 2021 Highs
22 März 2024 - 7:00PM
NEWSBTC
A crypto analyst on X is confident that Bitcoin
has bottomed and is poised for major gains in the
sessions ahead. Interestingly, the bullish outlook hinges on the
Bitcoin market cap retesting all-time highs at press time.
Will BTC Rally? Market Dynamics Changing So far, the Bitcoin price
is around 2021 highs in USD terms but recently broke all-time
highs, peaking at around $73,800. This fluctuation is also
reflected in its market cap. It currently stands at $1.25 trillion,
down 5% in the past 24 hours. Related Reading: Bitcoin Spot ETFs
See 4 Consecutive Days Of Outflows, Here’s What Happened Last Time
Notably, it is at the same price level as in 2021, when Bitcoin
prices peaked, recording new all-time highs. While optimism abounds
and the trader expects more sharp price expansions in the days
ahead, it is not immediately clear whether the coin will rip
higher, aligning with this forecast. Bitcoin is volatile and has
remained so despite changing market dynamics. At the same
time, unlike in the past, Bitcoin prices are driven not only by
retail forces but by institutions. These institutions are regulated
by the United States Securities and Exchange Commission (SEC),
which also approved the spot Bitcoin exchange-traded fund
(ETF). This Bitcoin derivative product has been the primary
driving force in the past ten weeks. This is from looking at how
prices have evolved since its approval in mid-January 2024.
However, since BlackRock and Fidelity are regulated by the United
States SEC, unlike retailers, they cannot act as they wish.
Considering the millions and billions of dollars at play, their
comments or assessments on the coin, now and in the future, can
greatly impact sentiment. Sentiment Is Dented, BTC Facing Headwinds
Sentiment has been dented when writing. Even with the United States
Federal Reserve (Fed) ‘s decision to hold rates at 5.5%, the
highest in 2023, lifting prices, there has been no solid
follow-through in price action. The coin remains steady below
$70,000. Whether prices will rally over the weekend remains to be
seen. However, for now, there are some headwinds to consider.
Related Reading: XRP Set For Rapid Rally, Target At $5 In The Short
Term First, there has been a slowdown in inflows to spot BTC ETFs.
At the same time, outflows from the Grayscale Bitcoin Trust (GBTC)
have increased. Second, after rallying sharply from October 2023, a
cool-off before halving might see the coin trend lower. Feature
image from DALLE, chart from TradingView
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