All Time High: Bitcoin Smashes Through $69K Before Dip, Will $100K or $250K Be Next?

Bitcoin, the world’s largest cryptocurrency, has reached a new milestone, soaring past its previous all-time high of $69,000 set in November 2021.

This historic achievement has been fueled by a combination of factors, including the recent launch of U.S.-based spot Bitcoin ETFs and the anticipation surrounding the upcoming Bitcoin halving event.

TLDR

• Bitcoin (BTC) has set a new all-time high price above $69,000, surpassing the previous record from November 2021.
• The launch of U.S.-based spot Bitcoin ETFs in January 2024 and the upcoming Bitcoin halving event have been major catalysts driving the current bull run.
• Some industry experts predict Bitcoin’s price could reach $250,000 or even $350,000 in the medium term, while others warn of a potential correction.
• Early Bitcoin miners have started selling their long-dormant block rewards, contributing to selling pressure as BTC retreated from its all-time high.
• The market’s thin liquidity and leveraged positions could amplify price movements, both upwards and downwards.

The introduction of spot Bitcoin ETFs in the United States on January 11, 2024, has been a game-changer for the crypto market. These exchange-traded funds have provided institutional investors with a regulated and convenient way to gain exposure to Bitcoin, leading to a massive influx of capital into the space.

According to industry experts, the success of these ETFs has been the primary catalyst behind Bitcoin’s recent bull run, with the price surging from around $45,000 at the time of their launch to well above $69,000 in early March.

“Bitcoin is in price discovery phase. Maybe really for the first time since it’s been an asset as now the bulk of U.S. wealth has easy access,”
Commented Mike Novogratz, CEO of Galaxy Digital

Analysts suggest that the newfound accessibility of Bitcoin for institutional investors has fueled an unprecedented level of demand, driving prices to new heights.

Adding to the bullish sentiment is the upcoming Bitcoin halving event, scheduled for April 2024. During this event, the reward for mining new Bitcoin blocks will be reduced by half, from 6.25 BTC to 3.125 BTC per block. Historically, Bitcoin halvings have been followed by significant price rallies, as the reduced supply of new coins creates a “supply shock” in the face of continued or increasing demand.

Industry watchers like Matteo Greco, a research analyst at Fineqia, believe that the halving could contribute to further upward momentum for Bitcoin’s price in the coming months.

However, not all experts share an equally optimistic outlook. While some predict Bitcoin could reach staggering heights, with targets of $250,000 or even $350,000 being thrown around, others warn of a potential correction on the horizon.

Joel Kruger, a market strategist at LMAX Group, expressed concerns about the short-term risks associated with more hawkish Federal Reserve communications, suggesting that a rise to $70,000 could be followed by “a well-overdue correction” before a subsequent push toward $100,000.

Adding fuel to the correction narrative are the actions of early Bitcoin miners. On-chain data analysis by CryptoQuant has revealed that just before Bitcoin peaked at its new all-time high, 1,000 BTC worth approximately $69 million were moved from addresses more than a decade old, likely linked to miners, to the Coinbase exchange.

This influx of long-dormant Bitcoin onto exchanges is often seen as a precursor to selling pressure, and given the market’s thin liquidity, it could have had an outsized impact on Bitcoin’s price.

“Considering that the exchange order book shows 5-10 bitcoins of liquidity for every $100 price change, a sell-off of 1,000 bitcoins is highly likely to trigger a significant price drop,”
Explained Bradley Park, an analyst at CryptoQuant.

As the crypto market navigates these uncharted waters, with Bitcoin testing new all-time highs and institutional adoption accelerating, the potential for both meteoric gains and sharp corrections looms large.

The interplay between the growing demand from ETF inflows, the looming supply shock of the halving, and the actions of long-term holders and miners will ultimately shape Bitcoin’s price trajectory in the coming months.

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