Bitcoin has crossed the $97,000 mark, showcasing a potential surge to new all-time highs. Key factors include a significant drop in exchange-held supply, rising retail and institutional demand, and strong technical signals supporting further increases. Market analysts, including Standard Chartered, are positive about Bitcoin’s future with predictions as high as $200,000 to $2.4 million by 2030.
Bitcoin’s price has taken a notable leap this week, crossing the significant threshold of $97,000, marking its highest point since February. As of Saturday, the cryptocurrency was trading at around $96,500, reflecting a sharp increase of 30% since its low in April. Several factors suggest that Bitcoin might just surge to a new all-time high within this year.
One of the significant indicators of Bitcoin’s bullish potential is the decreasing supply held on exchanges. Currently, only 1.42 million Bitcoins remain on centralized platforms, the lowest it has been in over six years. Back in November 2018, the supply was significantly higher at 3.21 million coins. At the same time, Bitcoin held outside exchanges has soared to 18.43 million, pointing to a trend where investors are opting not to sell. Prominent players in the market, like Michael Saylor’s strategy, which controls over 2% of Bitcoin’s total supply, are still accumulating shares. Big names like Coinbase, Tesla, and Block also haven’t shown any selling intentions.
Another driving factor behind the upward momentum is robust demand from both retail and institutional investors. A key sign of this surge in interest is reflected in Bitcoin exchange-traded fund (ETF) inflows. SoSoValue has reported that since the launch of Bitcoin ETFs in January last year, there have only been four months of outflows. These funds have collectively amassed more than $40 billion in assets, with Blackrock’s IBIT leading the pack at $60 billion. Fidelity’s FBTC and Ark Invest’s ARKB have gathered $20 billion and $19 billion, respectively. This increase in ETF flows suggests that institutional interest in Bitcoin is only growing, particularly in the U.S., while other countries are looking to diversify away from the dollar.
Lastly, looking at the technicals, Bitcoin’s price is showing solid resilience, which could lead to further increases. It has repeatedly stayed above the ascending trendline that connects its lowest points since August 5 last year. Additionally, Bitcoin has successfully surpassed the key resistance level of $88,690, which is a pivotal neckline for the double-bottom pattern. It has also managed to climb above both the 50-day and the 100-day Exponential Moving Averages. All these indicators suggest that Bitcoin is building momentum and could soon breach the $100,000 mark before targeting its previous all-time high.
