Bitcoin isn’t exhibiting indicators of slowing down anytime quickly because the flagship crypto token rose above $57,000 on February 27, the primary time since 2021. This worth surge is probably going on account of a number of recent developments that undoubtedly present a bullish narrative for BTC.
Demand For Bitcoin Is Skyrocketing
Bloomberg analyst Eric Balchunas revealed in an X (previously Twitter) put up that the new nine Spot Bitcoin ETFs (excluding Grayscale’s GBTC) set a brand new all-time buying and selling quantity file with $2.4 billion traded on February 26. This is critical because it reveals the increased demand for the flagship crypto from institutional traders.
Due to the curiosity in these Bitcoin ETFs, the fund issuers have continued to build up a major quantity of Bitcoin. Interestingly, as revealed by Bloomberg analyst James Seyffart, these issuers needed to buy over $403 million price of BTC due to the all-time buying and selling quantity recorded on February 26.
These Bitcoin ETF issuers aren’t the one institutional traders which have accrued a considerable amount of BTC as of late. Bitcoinist recently reported that MicroStrategy bought 3,000 BTC this month, rising its holdings to 193,000 BTC.
These purchases additional spotlight the overall sentiment amongst BTC whales who’ve continued accumulating, even when Bitcoin’s worth skilled a downward pattern following the approval of the Spot BTC ETFs. Meanwhile, NewsBTC recently reported how BTC’s provide is presently taking part in catchup with the demand, one other issue which is driving BTC’s worth up.
The much-anticipated Bitcoin Halving can also be drawing close to, one other issue which has continued to contribute to the bullish momentum available in the market. This occasion will additional lower the speed at which BTC comes into circulation, which may spark a major upward motion in BTC worth, particularly if the demand for the flagship crypto continues at this tempo.
The Derivatives Market Also Contributing To BTC’s Price Surge
There has been elevated buying and selling exercise within the derivatives market recently, with data from CoinGlass exhibiting how open interest has continued to rise. This enhance signifies that new cash is flowing into the Bitcoin ecosystem, with many merchants putting bullish leveraged bets on BTC.
This conclusion may also be reached when one considers the quantity of Bitcoin shorts liquidated within the final 24 hours. Data from Coinglass reveals that merchants betting on BTC decline have misplaced $270 million on this interval. As such, it’s greater than doubtless that these inflicting the open curiosity to rise are doubtless the bulls quite than the bears.
The derivatives market is believed to be integral to BTC’s worth discovery. CryptoQuant’s CEO once noted that “Bitcoin is in a futures-driven market,” which is much less affected by buying and selling exercise within the Spot market.
At the time of writing, BTC was buying and selling at round $56,100, up over 8% within the final 24 hours, based on data from CoinMarketCap.
BTC readies to check $56,500 resistance | Source: BTCUSD on Tradingview.com
Featured picture from U.Today, chart from Tradingview.com
