Bitcoin’s price soared above $72,000 in the US early hours on Monday. A confluence factors has influenced the cryptocurrency market to cause a 4.5% rise in just 5 hours, from below $69,000 to $72,579 on an intra-day basis.
Bitcoin demand #1 at a High Level
This rally is fueled by a robust Bitcoin spot-market, which suggests that the trend could be sustainable. Crypto analyst Daan Crypto Trades (@DaanCrypto) noted The healthy market dynamic, stating on X. “Funding rates still looking solid. Healthy reset, price slowly grinding up. That’s what we want and how we want to keep it. If longs start aping again while spot bid stops, then that will end up in another flush at some point. For now, all good.”
As spot prices rise, so do the prices of other commodities. data Coinglass reports that today $40.7 Million in BTC shorts have been liquidated, which has further pushed the BTC price up.
BTC Halving #2
Imminent danger next Bitcoin halvingThe upcoming halving of Bitcoin’s price, scheduled to take place on the 20th April in roughly 12 days time, has probably also played an important role. Bitcoin’s price has historically experienced a retraction before the halving, followed by an important rally in anticipation of this event.
Halfing the Bitcoin rewards will bring them down from 900 to 450 bitcoins per day. Anthony Scaramucci, Skybridge Capital shared He shared his views with CNBC and highlighted that Bitcoin’s value could increase further if the next halving is not priced.
“They’re now saying that the halving is priced in. I don’t believe that. I think Bitcoin has a lot more to go here,” He stated. To buy the daily supply of Bitcoin mined, $65,000,000 in Bitcoin ETF investments per day is required at current prices. It’s just $32.5 million in only 2.5 weeks.
BTC #3 Follows the Gold
It is important to note that the word “you” means “you”. correlation between Bitcoin and goldBitcoin’s movement is also influenced by the price of gold and. Both are considered to be safe-haven investments. Bitcoin’s recent price movement has been mirroring the gold’s impressive opening, which reached an all-time record of $2.253. Gold enthusiast Peter Schiff and crypto analyst Michaël van de Poppe have both remarked on the positive correlation between the two assets, suggesting a shared momentum amid economic uncertainties.
Gold bug Peter Schiff commented Use X to access the following: “It’s been a volatile Sunday night for gold. After an early $27 sell off, it rallied over $45, hitting a new record high above $2,348. This is an early stage of a major repricing of gold to reflect much higher future inflation. It’s a warning that monetary policy is too loose.”
Crypto analyst Michaël van de Poppe remarked: “There we go. Gold opening up with a big new upwards candle and Bitcoin is back to $71,000. Given the strength on commodities and the current price action of Bitcoin, I suspect we’ll see a test of the all-time high coming up.”
Strong Weekly Close
CRG, an analyst of renown, highlighted the significance of Bitcoin’s weekly candle closing, and pointed out that it was a contributing factor to this rally. Bitcoin’s ability to sustainably close above its 2021 peak for the second week in a row signals strong bullish sentiment on the market.
Weekly close
New all-time records this week
Source: my plums pic.twitter.com/wyxwomdDjZ
— CRG (@MacroCRG) April 8, 2024
#5 Hong Kong Readies For Spot ETF Launch
The launch of Bitcoin spot ETFs is finally here! Hong Kong Market optimism may have been sparked. Reports According to reports, major Chinese asset management companies, including Harvest Fund and Southern Fund (which manage assets of over $230 and $280 billion respectively) are preparing themselves, through Hong Kong-based subsidiaries, to enter the Bitcoin ETF markets, while awaiting regulatory approval.
#6 Extra: “Ethena-Effect”
Ethena Labs started buying BTC in a cash and carry trade to create an a “safer” USDe Synthetic dollar product to users. This move has been made critically observed By the Crypto Community
Ethena has more than half of a billion dollars in BTC spread across Binance OKX Deribit.
Ready for the halvening ₿ pic.twitter.com/auquK59DfY
— Seraphim (@MacroMate8) April 8, 2024
BTC was trading at $72,103 as of the time this article went to press.
Featured image created with DALL·E, chart from TradingView.com
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