Bitcoin Achieves New All-Time High As BTC ETFs Stoke Demand Ahead of Halving

March 11, 2024
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Bitcoin, the world’s largest cryptocurrency by market capitalization, has shattered records by surpassing the $71,000 mark, reaching an unprecedented lifetime high of $72,000. Driven by the surging demand from BTC ETFs, the digital asset’s ascent appears unstoppable as it gears up for the highly anticipated Halving event.

At 12:57 p.m. ET on Monday, Bitcoin’s value surged past the $72,000 mark, achieving $72,606.71. This represents a 4.26% gain in the last 24 hours and an impressive 9.10% increase over the past week, surpassing its previous all-time high (ATH) of $68,789.63 set on November 10, 2021.

In the latest analysis provided to The Daily Shib by research analyst Matteo Greco of the publicly listed digital asset and fintech investment business Fineqia International, he explained that the continued upward trajectory in Bitcoin’s price is significantly attributed to the positive momentum surrounding BTC Spot ETFs. Greco underlined, “Last week alone, the ten BTC Spot ETFs have collectively experienced a remarkable net inflow of approximately $2.2 billion. This surge has propelled the total net inflow since their inception to nearly $10 billion, now standing at $9.6 billion.”

Highlighting the success of the nine newly introduced ETFs, which have surpassed the $20 billion net inflow mark, Greco singled out IBIT, Blackrock’s BTC ETF, for its exceptional contribution of over $10 billion in net inflows. Yet, he cautioned against overlooking the substantial outflows from the Grayscale BTC ETF, which transitioned from a trust and has seen outflows of about $10.5 billion since its inception.

Greco pointed out a significant market shift due to the BTC ETF, leading to a departure from historical market cycle patterns. “In an unprecedented shift, Bitcoin has achieved a new all-time high before the halving event, a phenomenon not seen in previous cycles,” he observed.

“Historically, the market embarked on an uptrend in anticipation of a halving event, with the momentum typically extending 6-12 months post-event. This cycle, however, stands out due to the early surge in Bitcoin’s price, driven in part by the burgeoning interest and nearly unanimous expectation of BTC Spot ETF approvals as early as the beginning of the fourth quarter of 2023,” the research analyst further noted.

“This anticipation has undoubtedly been influenced by the introduction of ETFs into the market,” the analyst elaborated, before saying, “It is possible that BTC Spot ETFs acted as a catalyst, leading to a 6–9-month anticipation compared to previous market cycles.”

From the research analyst’s perspective, the current state of Bitcoin dominance—defined as BTC’s market capitalization relative to the overall market cap of digital assets—signals the early signs of a bull market. The sustained strength of Bitcoin’s dominance, alongside its superior performance compared to the broader market, is indicative of an early bull run’s typical dynamics. 

Such trends are historically succeeded by a phase in which Bitcoin’s dominance diminishes, leading to a diversification of capital into various altcoins as the market approaches its peak. This pattern of Bitcoin outperforming early in the cycle, followed by a more distributed market rally, is a hallmark feature observed in the initial stages of past bull markets.

Bitcoin’s price stands firm at $72,615.85, backed by a substantial 24-hour trading volume of $59,350,503,585 as of 1:24 p.m. ET on Monday. With a 3.93% rise over the last 24 hours, Bitcoin maintains its top spot on CoinMarketCap, flaunting a market capitalization of $1,427,007,642,980 and a circulating supply of 19,651,462 BTC.

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