The value of the price of Bitcoin has exceeded the threshold of 65000 USD, approaching its all-time high. This surge is occurring earlier than expected in anticipation of the halving event and the increase in investments in Bitcoin-linked ETFs.
Let’s see below all the details.
Summary
The price of Bitcoin approaches the historical threshold of 65000 USD
As anticipated, in the early hours of Monday, the price of Bitcoin (BTC) surpassed 65,000 USD, approaching its temporary high of 69,000 dollars set in November 2021.
Within a 24-hour period, BTC has recorded an increase of over 6%, while the CD20, a broad index of various tokens, has risen by 5.6%.
According to experts, there are several aspects that are projecting the asset towards the possibility of surpassing its historical peak of $69,000 by March.
Among these we see the climate of euphoria, the growing demand from institutional investors, and the historical profits associated with the upcoming Bitcoin halving.
Specifically, according to crypto analyst Ali Martinez, the Bitcoin market has seen significant activity in a specific price range, with over 500,000 BTC traded between $61,100 and $61,800. This has created a strong support level for the cryptocurrency.
Martinez suggests that maintaining the position above this support threshold could allow Bitcoin to continue its growth towards $65,900, with minimal resistance in sight.
However, it also warns of potential downside risks: a breakdown below the support level could trigger a correction, with the possibility of a decline to $56,970 or even $51,500.
Optimistic projections and record inflows: Will Woo’s analysis
The Bitcoin analyst, Will Woo, has recently made a positive forecast for the price of Bitcoin (BTC), suggesting the possibility of surpassing $125,000 by 2025.
In particular, he bases his analysis on a modest 3% allocation by clients of Blackrock and Fidelity.
These two gigantic financial institutions, with a total asset of 9.1 trillion and 4.2 trillion dollars respectively, could significantly influence the trajectory of Bitcoin prices.
Woo believes that, despite representing only a fraction of the estimated global wealth of around $500 trillion, the approval of major asset managers such as Blackrock and Fidelity could generate significant investment flows towards Bitcoin.
Specifically contributing to a significant appreciation of prices.
The analyst highlighted the recent impact of massive inflows of Bitcoin ETFs, in particular the iShares Bitcoin Trust (IBIT) by BlackRock Inc. and the Wise Origin Bitcoin Fund (FBTC) by Fidelity Investments.
These funds have attracted 79% of the total inflows among the “Newborn Nine” funds, also influencing the decision of four of the remaining seven funds to reduce their fees.
Within the context of a growth in the cryptocurrency market, which has attracted over $48 billion in cash inflows in the past 30 days, there is a significant increase in the cryptocurrency funding rate, indicating bullish control.
With regulatory frameworks on cryptocurrencies becoming increasingly clear, experts predict further cash inflows in the coming quarters.
Furthermore, Woo has noticed a bullish pattern in the 1-hour time frame for the price of Bitcoin, suggesting the possibility of an imminent bullish breakout.
iShares Bitcoin Trust (IBIT) by BlackRock: growth and rivalry with gold ETFs
The iShares Bitcoin Trust (IBIT) by BlackRock has reached a significant milestone, accumulating $10 billion in assets under management (AUM) in just over seven weeks since its launch.
This extraordinary growth trajectory highlights the increasing demand for investment products linked to Bitcoin, comparing them to traditional assets such as gold.
Unlike the first US gold-backed ETF, SPDR Gold Shares (GLD), which took over two years to reach $10 billion in AUM, the iShares Bitcoin Trust (IBIT) has achieved this goal in record time.
The rapid growth of Bitcoin-linked ETFs indicates a fundamental shift in investor sentiment, with digital assets gaining relevance compared to traditional safe-haven assets.
Bitcoin ETFs are attracting unprecedented inflows, far surpassing the growth rate of gold ETFs.
Recent data highlights that spot Bitcoin ETFs are experiencing record flows, reflecting investors’ enthusiasm for digital assets.
Meanwhile, gold prices are showing marginal gains compared to the significant rise of Bitcoin, reflecting the shift in investor preferences towards the store of value narrative.
Industry experts predict that Bitcoin ETFs are ready to surpass gold ETFs in terms of AUM in a relatively short period of time.
The rapid adoption of investment products linked to Bitcoin highlights the growing acceptance of cryptocurrencies as legitimate investment vehicles.
With Bitcoin continuing to outperform traditional assets, it is likely that its role as a store of value and portfolio diversification will further strengthen.
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