- The world’s largest cryptocurrency, Bitcoin (BTC), maintains its market dominance and firmly holds above $73,000.
- According to Willy Woo, daily capital inflows stored by the Bitcoin network have surpassed $2 billion, reaching a level similar to the last major bull market.
- Renowned crypto analyst Ali Martinez sheds light on a significant development where approximately $83 billion flows into various digital assets.
Bitcoin price surpassed $73,000 on Wednesday, setting a new record, and now investors are wondering about the continuation of the rally: What will happen?
Bitcoin Price Strengthening Above $73,000
The world’s largest cryptocurrency, Bitcoin (BTC), maintains its market dominance and firmly holds above $73,000. Investor sentiment remains strong as Bitcoin’s price continues its ascent to new highs.
According to Bitcoin analyst Willy Woo, daily capital inflows stored by the Bitcoin network have surpassed $2 billion, reaching a level similar to the last major bull market. Woo predicts that inflows are likely to increase even further this time. He attributes the notable increase in inflows to the opening of spot ETFs, significantly boosting capital inflows into the Bitcoin network.
On-chain data also indicates accumulation by small Bitcoin wallets and selling by whales. According to on-chain data provider Santiment, as Bitcoin consistently reaches new all-time highs, the number of small wallets holding less than 0.1 BTC has continued to increase by 277,000 in the last two weeks. Conversely, wallets holding 1,000 BTC or more decreased, with 105 fewer wallets recorded during the same period.
Possibility of BTC Price Rising to $83,000
Renowned crypto analyst Ali Martinez sheds light on a significant development where approximately $83 billion flows into various digital assets. Specifically, a significant portion of these inflows, totaling $75 billion, is directed towards two leading cryptocurrencies, Bitcoin and Ethereum.
Martinez’s analysis based on Bitcoin’s MVRV Pricing Bands forecasts a critical price target of $83,035 for Bitcoin. This observation underscores the increasing momentum and investor interest in Bitcoin, indicating the potential for the cryptocurrency to reach significant milestones in its value.
The flow of funds into Bitcoin and Ethereum reflects a broader trend of institutional and retail investors seeking exposure to the cryptocurrency market. Meanwhile, despite higher-than-expected inflation figures in February, U.S. stocks have also shown strong performance. Fidelity Global Macro Director Jurrien Timmer highlights a significant trend in the financial landscape, emphasizing the resurgence of liquidity regardless of the Federal Reserve’s stance.
Timmer notes that the increase in the Federal Reserve’s balance sheet, reverse repo (RRP) withdrawals, and the total liquidity shown by the Treasury General Account (TGA) at the Federal Reserve have steadily increased since mid-2023. This increase in liquidity has coincided with the rise in stock prices. Furthermore, the persistence of liquidity suggests that a significant correction in Bitcoin’s price or the cryptocurrency market appears to be a distant possibility.
