A new chapter unfolds as Bitcoin achieves a historic high. With a fleeting wick of $69,210, the dominant crypto has set a new ATH for the first time since Nov 8th, 2021, before swiftly dropping to $63K. Over $1.1 billion in assets, mostly long orders, were liquidated during this period. Notably, CryptoQuant data showed a transfer of 1,000 BTCs [worth roughly $69 million] to Coinbase.
These addresses, having existed for over a decade, could be associated with a substantial quantity of BTC mined in 2010, a factor that may have contributed to the recent price decline. Market analysts view this transfer of Bitcoin from long-standing holders to new owners as a positive development, reflecting a shifting dynamic in the market.
Let’s be honest A lot of people did not expect BTC to get back to ATH territory, with Fed Funds at 5.33% and the average mortgage rate at 7.27% It was a speculative, zero-interest rate, easy money phenomenon. They said, “Boy, do we have news for you?
Given the volatile nature of the cryptocurrency market, the question that lingers is: what will be the ATH of this bull run? Experts caution against panicking and suggest adopting a long-term perspective on the Web3 ecosystem. Several macro factors will play a key role in the coming months, with interest rates playing a significant part. If interest rates are reduced this year, we can expect a further increase in liquidity.
Bitcoin ETF
Notably, the last time Bitcoin surpassed its all-time peak, its price tripled in just 103 days. That would take the BTC price to $213,000 by June if this is repeated. Despite the sharp price drop, the spot ETF market continues to set records with $10 billion in volume, indicating profit-taking activity. As of March 5, there was $648 million in total net inflow.
The biggest issuer, BlackRock, has sought to buy more Bitcoin ETFs for its Strategic Income Opportunities Fund [SIO]. In a recent filing with the SEC, the leading AUM stated that through SIO, it aims to offer investors appealing earnings, returns, and substantial diversification for their investment portfolio.
The Fund may acquire shares in exchange-traded products [“ETPs”] that seek to reflect generally the performance of the price of BTC by directly holding BTC [“ ETPs”], including shares of a BTC ETP sponsored by an affiliate of BlackRock.