Bitcoin reaches $124,000 in just 24 hours after hitting the $120,000 mark.
Bitcoin reached record highs of over $126,000 this week. However, it appears investors have taken some profits as the strengthening U.S. Dollar has challenged Bitcoin’s value. so-called “debasement-trade” flows. Bitcoin is currently trading for $123,962.
Investors have begun to hedge their dollar exposure with bitcoin. known In trading circles, as “debasement trades.”
This week’s surge was driven by large inflows of money into Bitcoin Exchange-Traded Funds (ETFs) and speculation on the weakness of fiat currencies. amid a prolonged U.S. shutdown of government
BlackRock IBIT, according to Bloomberg analyst Eric Balchunas led Weekly inflows for all ETFs totaled $3.5 billion and accounted for 10% of net ETF flows. Inflows were also seen in all 11 of the original Bitcoin spot ETFs. This shows a high demand for Bitcoin-based ETFs.
IBIT was launched only 21 months back. approaching $100 billion in assets under management, making it BlackRock’s most profitable fund — surpassing even products that have been around for over 20 years.
However, uncertainty around the ongoing government shutdown — now in its second week — and the delay of key economic data has prompted some investors to seek safer assets, temporarily weighing on Bitcoin’s appeal.
How high will bitcoin rise?
Analysts claim that Bitcoin’s recent correction to roughly $122,000 is healthy. It may pave the way for future gains.
The current support is around $120,000 while the resistance stands at $135,000. “Overall, dips are for buying,” noted Market analyst Mags On X.
Onchain data reinforces strong buying momentum. Glassnode reported that Bitcoin’s relative strength indicator rose from 44 up to 66 in the last week. This indicates a growing confidence among investors.
Fiscal impasse in the U.S. may be further fueling The demand for safe-haven investments. Geoffrey Kendrick is the head of Standard Chartered’s digital assets. suggested Bitcoin may reach $135,000 in the near future and $200,000 by the end of this year if market conditions remain unchanged.
The price of gold has continued to rise, also supported by central banks’ purchases and the expectation of further Fed easing.
Meanwhile, short-term Bitcoin whales — entities holding over 1,000 BTC acquired in the past five months—are sitting on roughly $10.1 billion in paper gains, according CryptoQuant.
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Source: bitcoinmagazine.com
