As the veil of darkness fell across the United States in the twilight hours of Monday, Bitcoin, the world’s most popular cryptocurrency, experienced a notable surge. Its value skyrocketed, breaking the formidable $72,000 threshold. This meteoric rise, an impressive leap of over 4.5% in the brief span of five hours, swelled from humble beginnings below $69,500 towards the towering intra-day peak of $72,579. This climb is considered a fallout from an amalgam of factors brewing a perfect storm in the erratic world of the crypto market.
The primary force driving this rally was the substantial demand for Bitcoin on the spot market, suggesting a solid foundation for this recent growth. Daan Crypto Trades, a respected analyst in the cryptocurrency community, analyzed the market dynamics as a promising reset. His only cautionary note was against the practice of impulsive ‘longs’ – if these were to start again while spot bid halts, this could culminate in another drastic fall later on.
Contributing to the surge was data unearthed from Coinglass, revealing that $40.7 million worth of Bitcoin shorts met their undoing today, conjoinedly boosting the cryptocurrency’s price.
Next in line was the impending Bitcoin halving. With a little over ten days to go, the event slated to occur on April 20 has potentially had a significant influence on the market dynamics. Historically, Bitcoin’s price usually retracts before the halving, only to bounce back with a vigorous rally. The expectant halving will halve the reward for Bitcoin miners, from an estimated 900 coins per day to a mere 450.
Anticipating this event, Anthony Scaramucci of Skybridge Capital shared his projections. He pointed out the unpredicted nature of the upcoming halving and mused about its capability of further jacking up the Bitcoin’s price.
Piggybacking on this speculation, it is essential to note that Bitcoin seems to be tracing the footsteps of gold, with both being seen as safe-haven assets. Gold began the week strongly, achieving an all-time high of $2.253. This mirrored the upward trajectory of Bitcoin’s price, leading many to posit a shared momentum influenced by financial uncertainties.
On this front, gold enthusiast Peter Schiff voiced concerns about loose monetary policy after gold’s volatile Sunday. On the other side, crypto analyst Michaël van de Poppe foresaw a test of the all-time high, citing the impressive performance of commodities and Bitcoin’s current price action.
Crucial to Bitcoin’s success was its healthy weekly candle close, a strong signal of bullish sentiment in the market, according to CRG, a renowned analyst.
The advent of Bitcoin spot ETFs in Hong Kong might have injected a sense of optimism into the market. Reports suggest that leading Chinese asset managers such as Harvest Fund and Southern Fund, collectively managing assets worth over half a trillion dollars, are preparing to delve into the Bitcoin ETF market.
To stir the pot further, Ethena Labs has begun incorporating Bitcoin as part of their trade to create a safer synthetic dollar product, dubbed USDe. This move has attracted the critical eye of the crypto community.
As of the time of writing, Bitcoin stood resilient at a trading price of $72,103, creating ripples of excitement in the ocean of cryptocurrency.
