The cryptocurrency market has begun March with strong momentum, although there are indications of a slight deceleration compared to its rapid rise recently.
Bitcoin (BTC) has remained stable near the $62,000 level, demonstrating resilience amidst fluctuating market sentiments. This comes after its impressive surge beyond $60,000 and reaching a peak of $67,000 today.
As of the time of writing, Bitcoin (BTC) is trading at $66,277 boasting a market capitalization of over $1.303 trillion.
Here are 3 indicators that the bitcoin will reach new ATH
The Bitcoin Halving
Bitcoin halving, a fundamental event occurring roughly every four years, has a profound impact on the cryptocurrency’s price dynamics, often leading to positive price movements. This is an event where the rate at which new Bitcoins are mined is halved, reducing the rate of supply growth. Investors, anticipating this scarcity, tend to accumulate Bitcoin in advance of the halving event, driving up demand and, consequently, the price.
In the 2016 halving event, Bitcoin’s price surged from around $650 to over $19,000 within approximately 18 months, marking a significant appreciation in value. Similarly, after the most recent halving in May 2020, Bitcoin’s price witnessed a remarkable uptrend, reaching new all-time highs above $60,000 in early 2021. These instances underscore how the reduction in supply issuance, coupled with sustained demand, has historically led to positive price movements in Bitcoin.
Read Also: ETH Hits New 2-Year High: Should You Sell Now?
Bitcoin balance on centralized exchanges
A notable indicator suggesting a potential further spike in Bitcoin’s price is the discernible trend among investors shifting from centralized platforms to self-custody methods.
Recent data from CryptoQuant reveals that BTC exchange netflows have consistently been negative over the past few weeks. This significant outflow of Bitcoin from exchanges indicates a growing preference among investors to hold their assets in self-custody wallets rather than leaving them on centralized platforms.
Increased institutional and retail interest
Increased interest in Bitcoin, as evidenced by rising Google search results and the accessibility provided by approved Bitcoin exchange-traded funds (ETFs), can exert significant influence on the price of Bitcoin through several mechanisms.
The approval of Bitcoin ETFs provides retail investors with a convenient and regulated means to gain exposure to Bitcoin without directly owning or managing the cryptocurrency themselves. This increased accessibility will lead to greater participation in the Bitcoin market, driving up demand and potentially pushing the price higher.
Some experts also believe that the price will reach $80k before going down again.
Note: This is not financial advice.
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