Bitcoin‘s price ascended to unprecedented levels on March 14th, with investor enthusiasm on the rise as the digital currency marked a new peak at $73,794 on central exchanges. This sharp increase indicated a rebound from earlier signs of faltering, as Bitcoin recovered robustly from prior hesitations seen at the beginning of the Wall Street trading session.
Analysts Observe Bitcoin’s Resilience
Notable analysts, including popular investor Rekt Capital, observed that despite a preceding drop earlier in the week, Bitcoin managed to bounce back, now leveraging its previous high-water mark as a foundation for support. This resilience has kept investors’ spirits high and their outlook optimistic.
In the wake of Bitcoin’s surge, market attention turned toward the tendencies of supply, particularly the influence of the US spot Bitcoin exchange-traded funds (ETFs) on the demand side. Reports from Farside, a UK-based investment firm, revealed a considerable net inflow of $683.7 billion into these funds on March 13th.
ETF Adoption and Market Dynamics
This influx of capital has tipped the supply scarcity in favor of bullish traders, outperforming the daily outflows from the Grayscale Bitcoin Trust (GBTC). Willy Woo of Woobull, a Bitcoin data platform, supported ARK Invest CEO Cathie Wood’s sentiment, stating that institutional involvement in ETFs is just taking off, anticipating a few months before significant capital allocation commences.
Amidst this market activity, MicroStrategy—a tech firm with a massive Bitcoin reserve—announced plans to expand its holdings, aspiring to possess more than 1% of all available Bitcoin. With an existing stash of 205,000 Bitcoins, the firm is eyeing an addition worth $500 million, targeting over 210,000 Bitcoins.
Despite some skepticism about the sustainability of the current price momentum, Bitcoin’s rise remains a prominent topic among market watchers. Charles Edwards, of Capriole Investments, remains bullish, anticipating an upcoming ascent for the BTC/USD pair, while also acknowledging the role of recent ETF capital inflows in staving off a potential downturn.