Bitcoin Price Eclipses $72,000: 5 Major Factors
08 April 2024 - 4:00PM
NEWSBTC
In the early US hours of Monday, Bitcoin witnessed a significant
surge, with its price climbing above the $72,000 mark. The ascent,
marked by a more than 4.5% increase within a mere five-hour window
from below $69,500 to an intra-day high of $72,579, can be
attributed to a confluence of factors that have stirred the crypto
market. #1 Strong Bitcoin Spot Demand The rally appears to be
fueled by robust demand in the Bitcoin spot market, hinting at the
potential sustainability of the move. Crypto analyst Daan Crypto
Trades (@DaanCrypto) noted the healthy market dynamics, stating on
X, “Funding rates still looking solid. Healthy reset, price slowly
grinding up. That’s what we want and how we want to keep it. If
longs start aping again while spot bid stops, then that will end up
in another flush at some point. For now, all good.” Related
Reading: 12 Days Until Bitcoin Halving: Why $100,000 Isn’t Much
Further Away In tandem with the rising spot prices, data from
Coinglass reveals that $40.7 million in BTC shorts were liquidated
today, further propelling the price upwards. #2 BTC Halving The
imminence of the next Bitcoin halving, slated to occur roughly 12
days from now on April 20, has also probably played a pivotal role.
Historically, Bitcoin has experienced a pre-halving price
retraction followed by a significant rally leading into the event.
The halving will reduce the Bitcoin reward from approximately 900
coins per day to 450 coins. Skybridge Capital’s Anthony Scaramucci
shared his insights with CNBC recently, highlighting the unpriced
nature of the upcoming halving and its potential to further drive
Bitcoin’s price. “They’re now saying that the halving is priced in.
I don’t believe that. I think Bitcoin has a lot more to go here,”
he stated. At current prices, roughly $65 million in Bitcoin ETF
inflows per day are needed to buy up the daily mined supply. In 2.5
weeks, that’s only $32.5 million. #3 BTC Follows Gold The
correlation between Bitcoin and gold, both considered safe-haven
assets, is another factor contributing to Bitcoin’s price movement.
Gold’s strong opening this week, reaching a new all-time high of
$2.253, has been mirrored by Bitcoin’s price trajectory. Gold
enthusiast Peter Schiff and crypto analyst Michaël van de Poppe
have both remarked on the positive correlation between the two
assets, suggesting a shared momentum amid economic uncertainties.
Gold bug Peter Schiff commented via X: “It’s been a volatile Sunday
night for gold. After an early $27 sell off, it rallied over $45,
hitting a new record high above $2,348. This is an early stage of a
major repricing of gold to reflect much higher future inflation.
It’s a warning that monetary policy is too loose.” Related Reading:
$115-Million Bitcoin Whale Wakes Up From 10-Year Slumber – What’s
Next? Crypto analyst Michaël van de Poppe remarked: “There we go.
Gold opening up with a big new upwards candle and Bitcoin is back
to $71,000. Given the strength on commodities and the current price
action of Bitcoin, I suspect we’ll see a test of the all-time high
coming up.” #4 Strong Weekly Close The significance of Bitcoin’s
weekly candle close was highlighted by CRG, a renowned analyst, who
pointed to it as a contributor to the rally. The ability of
Bitcoin’s price to close sustainably above its 2021 high for the
second consecutive week signals a strong bullish sentiment in the
market. Great weekly close Fresh all time highs this week Source:
my plums pic.twitter.com/wyxwomdDjZ — CRG (@MacroCRG) April 8, 2024
#5 Hong Kong Readies For Spot ETF Launch Finally, the anticipation
of the launch of spot Bitcoin ETFs in Hong Kong may have injected
optimism into the market. Reports indicate that major Chinese asset
managers, such as Harvest Fund and Southern Fund, managing assets
worth over $230 billion and $280 billion, respectively, are
positioning themselves through Hong Kong subsidiaries to enter the
Bitcoin ETF market, awaiting regulatory approval. #6 Extra: The
“Ethena-Effect” Ethena Labs has started purchasing BTC as part of a
cash-and-carry trade in order to create a “safer” USDe synthetic
dollar product for users. The move is being critically observed by
the crypto community. Ethena now holds more than half a billion in
BTC hedged across Binance, OKX and Deribit Ready for the halvening
₿ pic.twitter.com/auquK59DfY — Seraphim (@MacroMate8) April 8, 2024
At press time, BTC traded at $72,103. Featured image created with
DALL·E, chart from TradingView.com
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