Bitcoin Maintains Position Above $70,000: What's the Next Milestone for the World's Leading Cryptocurrency?

Bitcoin Maintains Position Above $70,000: What's the Next Milestone for the World's Leading Cryptocurrency?

Bitcoin, the largest cryptocurrency in the world, has once again surged past the $70,000 mark, indicating a renewed bullish sentiment in the market. Following a period of sharp profit booking, Bitcoin's resurgence during the early Asian trading hours on Tuesday saw it climb over 5%, successfully reclaiming the coveted $70,000 threshold. This uptick in Bitcoin's price has also lifted the broader crypto market, with altcoins following suit and experiencing notable gains.

The recent rally in Bitcoin comes amidst several positive catalysts propelling its upward trajectory. Approval of Bitcoin exchange-traded funds (ETFs), renewed interest from institutional investors, and anticipation surrounding the upcoming Bitcoin halving event have all contributed to the digital asset's meteoric rise in recent times. However, a brief period of profit-taking had pushed Bitcoin's price to around the $60,000 mark before its latest surge.

Bitcoin Holds Over $70,000; Eyes Set on $80,000 as Next Target?

Bitcoin has surged by 161.52% in a year, reaching the $70,533 level, with its market capitalization standing at an astounding $1.39 trillion, according to data from Coinmarketcap. This resurgence has ripple effect across the entire cryptocurrency market, with the global market capitalization of the crypto space increasing by approximately 4.7% to $2.67 trillion within the last 24 hours. Moreover, the total crypto market volume saw a massive jump of over 40.8% to $112.11 billion during the same period.

Shivam Thakral, CEO of BuyUcoin, commented on Bitcoin's recent performance. After consolidating for a week, the cryptocurrency has broken through the $71,000 mark and is now hovering around $70,000, which is acting as a temporary support level. He further noted that the next target for Bitcoin would be the $80,000 level, which, if breached, could pave the way for a move towards the $100,000 milestone.

Analysts are closely monitoring metrics such as Age Consumed, which tracks the movement of previously dormant Bitcoin addresses. This metric provides valuable insights into Bitcoin's activity and sentiment, reflecting the extent to which long-held coins are being transferred.

Bitcoin's rally has not only propelled its own price higher but has also lifted other major altcoins. Ethereum, Solana, Dogecoin, Cardano, Avalanche, Shiba Inu, and Chainlink are among the top 20 altcoins that have seen gains ranging from 4% to 6% each. Furthermore, lesser-known altcoins such as, Bonk, Internet Computer, Pepe, Arweave, and Near Protocol have experienced even more significant price surges, with gains of 10% to 15% in the last 24 hours.

Bitcoin's recent surge past $70,000 has reignited optimism among investors, with all eyes now set on the $80,000 level as the next milestone. With positive catalysts in play and bullish sentiment prevailing in the market, Bitcoin potentially achieving new highs in the near term seems inevitable.

Bitcoin (BTC) ETFs Played a Key Role

Bitcoin's remarkable surge to $70,000 resulted from a prolonged rally in mid-October 2023. However, the rally shifted gears on January 11, 2024, when the US SEC approved Bitcoin ETF for trading.

Bitcoin ETF Holdings | Jan 11 to March 8, 2024. Source: TheBlock

The approval of Bitcoin exchange-traded funds (ETFs) has fueled investor enthusiasm and propelled Bitcoin into traditional finance. These ETFs provide institutional and retail investors with a convenient and regulated avenue to gain exposure to Bitcoin, expanding its investor base and driving up demand. As of March 8, 2024, Bitcoin ETFs have acquired over 790,000 BTC worth more than $55 billion at current prices, highlighting institutional investors' significant role in the rally.

Bitcoin (BTC) Price vs. Halving Cycles

While the $70,000 milestone is undoubtedly a celebration among Bitcoin enthusiasts, it also raises questions about what lies ahead for the world’s largest cryptocurrency. Some analysts believe that Bitcoin's price could climb higher as institutional adoption accelerates and global economic uncertainties persist. However, the next Bitcoin halving, scheduled for April 19, is now less than 45 days away. Bullish investors are quick to point out that Bitcoin has hit a new all-time high before each of the last 4 halving cycles, and rightly so.

However, it is also important to note that Bitcoin and other Proof of Work (PoW) networks have often suffered major post-halving sell-offs. If this pattern repeats itself, it could put Bitcoin's price at risk of a significant pullback in Q2 2024.

Bitcoin Could Face More Regulatory Scrutiny

Bitcoin has surged above $70,000 and now has a market capitalization of over $1.4 trillion, making it an asset of systemic importance. With more than 50 million investor addresses worldwide, regulatory concerns such as taxation, investor protection, and illicit activities could pose significant challenges that may impact Bitcoin's future price trajectory. However, the milestone of $70,000 demonstrates Bitcoin's resilience and staying power as a transformative force in the global financial landscape. As Bitcoin continues to redefine traditional finance, its journey toward mainstream adoption and widespread acceptance seems unstoppable.

Asian stocks dropped

Bitcoin has surged to new peaks despite the dip in Asian equity indices, such as Japan’s Nikkei and Australia’s ASX, which experienced a 2% fall after a Reuters report suggested that the Bank of Japan could increase the benchmark interest rate above zero this month. Analysts have long been concerned that BOJ is a significant source of uncertainty for both traditional and crypto markets. However, the consensus is that any bitcoin dip will likely be short-lived due to the supply-demand imbalance caused by the recent strong inflows into the U.S.-listed spot ETFs and the upcoming reward halving.