Bitcoin Price Hits New ATH! Top Reasons for the $71K Milestone

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On March 11, Bitcoin surprised everyone with a sudden surge, shooting up from $69,000 to an impressive $71,500, marking a new all-time high.

Despite the excitement of this surge, investors are uncertain about what comes next. Many are anticipating a possible correction, fearing Bitcoin might drop below the $70,000 mark.

What do you think? Read on to make your decision.

A Closer Look at the Numbers

Data from IntoTheBlock adds an interesting perspective. Most Bitcoin holders bought in at an average of $465,200. The fate of Bitcoin’s price hinges on whether these holders continue to “HODL.” If they do, Bitcoin may avoid a correction. However, if the $70,000 support level breaks, prices could dip to $63,000 or lower. Bitcoin faces a delicate situation, balancing the risk of being sold at key points and the continuous influx of funds from exchange-traded funds (ETFs).

Also Read: Bitcoin Ethereum And XRP Price Prediction For Coming Week!

The surge in ETF purchases has surprised many, prompting even long-term Bitcoin enthusiasts to reconsider their short-term forecasts. Some now see $100,000 as a modest estimate, while others worry that the quick price rise might bring about Bitcoin’s peak sooner than expected, ushering in the next bear market.

Economic Reports: Key Influencers Ahead

As the week unfolds, all eyes are on crucial reports about the US economy, including the Consumer Price Index (CPI) and Producer Price Index (PPI) for February. These reports could significantly impact the Federal Reserve’s decisions on interest rates, a critical factor for Bitcoin as miners aim to make the most of high prices before the upcoming halving in April.

Investors are closely watching spot ETFs this week to gauge Bitcoin purchases. While big investors express excitement, there’s a lingering worry that ETFs might lose popularity in the future. For example, Cathie Wood suggests that predicting a $1 million valuation for Bitcoin might have been conservative.

Read More: Bitcoin ETFs Secure 175,000 BTC: Here’s What To Expect Next?