Bitcoin (BTC) price price is making slow but steady steps north, closing in on the $80,000 target weeks ahead of the halving. As tailwinds come from new capital inflow into the BTC spot exchange-traded funds (ETFs) markets, it remains anybody’s guess where the pioneer cryptocurrency will top out once the bull market catches steam.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Bitcoin ETFs now manage more than half as much as Gold ETF assets
While Bitcoin price is fluctuating up and down, it continues to maintain a northbound directional bias. It comes as the Cryptocurrency Fear and Greed Index remains at 81, signifying extreme greed, likely because traders do not want to miss out on the action.
Two themes continue to drive the market. First, anticipation for the BTC halving, around 39 days away, is expected to kick off the next bull cycle. Second, the ongoing ETF narrative has not let up. The latest investment product is lauded for bringing BTC to Wall Street and driving a wave of institutional interest into the market.
Data according to Kaiko Research shows that the depth of liquidity in the BTC market, as measured by the value of exposure in order books within 2%, reached a record $600 million, with the number of bids significantly exceeding the number of asks.
This points to profit-taking among traders as Bitcoin price continues to record higher highs. Nevertheless, the data also pointed to persistent refinancing rates, showing that the demand for BTC remains high.
#BTC market depth, measuring the quantity of bids and asks on BTC order books, has been on a steady upwards trend over the past few months, hitting more than $600mn last week. pic.twitter.com/Sq2UTITGk9
— Kaiko (@KaikoData) March 11, 2024
Recent reports ascribe this growing demand to institutional and retail interest in spot BTC ETFs, with data showing that this investment product is steadily gaining ground on Gold ETFs in assets under management (AUM).
JUST IN: #Bitcoin ETFs are 58% of the way to flipping Gold ETFs for total assets.
$58.7b for $BTC
$98b for GoldThat’s just after just 8 weeks…
At this rate, Bitcoin will flip Gold ETFs in a few month! pic.twitter.com/M2MK2Q5XAI
— Bitcoin Archive (@BTC_Archive) March 13, 2024
With BTC ETFs recording almost $60 billion in AUM, their Gold counterparts stand around $98 billion, putting the former just about 58% away in just eight weeks since the investment product hit the market. If the pace sustains, Bitcoin could flip Gold ETFs in a few months.
Eric Balchunas, an ETF specialist with Bloomberg Intelligence, believes all 10 BTC ETFs will do so. The lowest-ranked Bitcoin ETF in terms of AUM, WisdomTree’s BTCW, manages a healthy $74 million and ranks among the top 15% of the 108 ETFs launched in 2024.
I get asked a lot on intvs whether all Ten btc ETFs will survive and the answer is 100% yes they will all be here in a year. Even the least in aum, $BTCW, has a healthy $74m. Out of the 108 ETFs launched in 2024 so far it ranks 16th. (top 15%). That’s how insane all this is. pic.twitter.com/ZVQ5ho3u2C
— Eric Balchunas (@EricBalchunas) March 13, 2024
Bitcoin price outlook as spot BTC ETFs lead crypto market
Bitcoin price is not showing any signs of stopping as the bulls seize every correction as a “buy-the-dip” opportunity. With such a record of accomplishment, BTC price has managed to record new peaks, topping out at $73,650 on Binance against the Tether (USDT) stablecoin.
Nevertheless, all roads seem to lead north as BTC bulls continue to flock to the scene. The three technical indicators shown in the weekly chart below suggest this. First, the Relative Strength Index (RSI) is climbing to show rising momentum.
The bulls also maintain a strong presence in the BTC market, seen with the large growing volumes of green histogram bars that remain in positive territory. Moreover, the bullish trend appears to be gaining strength, seen with the growing volume indicator.
An increase in buying pressure could see Bitcoin price reclaim the $73,000 level. Further north, the pioneer cryptocurrency could tag the $75,000 milestone, or in a highly bullish case, extrapolate to tag the $80,000 psychological level. This would denote a 10% climb above current levels.
BTC/USDT 1-week chart
On the other hand, if traders begin to cash in on the gains made so far, Bitcoin price could retract. Investors looking to short BTC should wait for a break and close below the $64,044 mean threshold, the midline of the supply zone extending from $62,278 to $65,618.
A flip of the bullish breaker (formerly supply zone) from support to resistance could see BTC provide another buying opportunity around the $60,000 psychological level.
