Bitcoin’s new all-time high of $69,200 on Tuesday March 5th quickly turned into a selloff, with the Bitcoin price quickly falling almost $10,000 to reach $59.700 USD to one coin.
Bitcoin’s price in USD
However, news just in from Bitcoin Archive on X (@BTC_Archive), says that the crypto is back above $66,000 and now has a $1.3 trillion market cap.
At the time of this article going to press, that price had rallied further to $67,178.50 in USD.
8.5 billion in inflows
That’s not all from Bitcoin Archive, who also posted recently on X that Bitcoin ETFs have now had $8.5 billion in net inflows since being approved earlier this year.
Predicted, but still a surprise
With all the excitement around the new all time high Bitcoin price that’s been brewing this week, a number of experts predicted that Bitcoin’s price would face a fall as soon as it had topped $69,000. Read our analyst’s prediction from yesterday, for example.
So why has Bitcoin rallied so fast?
The first possible reason for Bitcoin’s rally
Tom Cohen, head trader at Algoz Technology, believes this is due to continued bullishness from the approval of Bitcoin ETFs and their significant demand:
Currently, these Bitcoin ETFs are buying 9000 BTC coins a day and the miners are producing just 900 coins a day. Demand is dramatically more than supply. Hence the big price increase. Leading up to a halving of BTC, which will occur in April this year, there have been 3 previous halving bull markets and data suggests this fourth one has only just begun.”
The second likely reason for Bitcoin’s rally
Rania Gule, market analyst at XS.com, believe it may have more to do with the lead-up to the Bitcoin halving event occurring soon:
Occurring approximately 60 days before the Bitcoin halving event, this stage is marked by an increase in Bitcoin’s price due to investor anticipation. Prices exhibit high volatility as traders follow a strategy of buying before halving and selling quickly. Caution is advised, as a temporary price drop might occur before the halving – a phase I believe the market is currently in.”
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