Why is Bitcoin Price Up Today? Is New ATH Imminent This Week?

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With the crypto market valued at $2.5 trillion and Bitcoin hitting a new high of $64,000, bulls are firmly in control. The surge is fueled by growing inflows into US-listed Bitcoin Spot ETFs, despite outflows from GBTC. Institutional interest and the anticipation of an Altcoin season suggest that the bull run is just beginning. Let’s explore what’s driving this remarkable surge.

Is Bitcoin Price On The Verge To Hit New ATH?

Bitcoin (BTC) has made a remarkable comeback, reaching $64,000, just 8% below its all-time high. After a brief dip to $58,700 in late February due to a sell-off, Bitcoin bounced back, recovering almost 5% of its losses. This resilience highlights Bitcoin’s ability to stand against market volatility. Bitcoin’s latest weekly candle on Bitstamp showed a remarkable $11,404 difference between its opening and closing prices, highlighting its bullish momentum.

On a positive note, Bitcoin’s recent jump shows greater interest among investors and analysts, making the market look for answers pushing this pump. A key factor adding to this surge is the growing interest in Bitcoin exchange-traded funds (ETFs), mainly led by BlackRock’s iShares Bitcoin Trust (IBIT).

Notably, IBIT has achieved a noteworthy milestone by surpassing $10 billion in assets under management (AUM) in just seven weeks—an unprecedented call of big bulls entering the crypto space. This surge in ETFs is surely a sign of a rising trend for Bitcoin among institutional investors seeking exposure to the crypto market through traditional investment channels. It is also because of less regulatory pressure. 

Expert’s Insight 

In this context, entrepreneur Anthony Scaramucci has weighed in on the situation, predicting that Bitcoin ETFs could eventually control up to 10% of the total Bitcoin supply—an indication of their significant influence on Bitcoin’s price dynamics.

Moreover, the anticipation surrounding the upcoming Bitcoin halving event, known for reducing new coin creation and boosting scarcity, usually drives up Bitcoin’s price. Despite being a month away, investors are already preparing for this anticipated price surge, showing faith in Bitcoin’s long-term value.

On the flip side, despite the market euphoria of Bitcoin’s price rally, there are signs that the market is approaching a state of overheating. One such indicator is the near-horizontal resistance that Bitcoin currently faces, which might block Bitcoin’s upward rise. Plus, record-high open interest in Bitcoin futures on the Chicago Mercantile Exchange (CME) suggests heightened speculation and investor participation, raising concerns about market stability.

As Bitcoin keeps growing, and with positive supply shock most traders may already have accumulated enough and are waiting to cash in. Thus, as a ballpark figure 95% of the supply is in profit, which might imply a large “sell” for Bitcoin (BTC). As the star crypto approaches historical price zones, traders must be more cautious.