The bitcoin price has shot up to $71,500 on the Bitstamp chart. It is the highest point ever for the cryptocurrency. All wallets are in the green, bitcoin is now exploring unknown historical territory.
Bitcoin all-time high
BTC strings together one record after another. Exchange traded funds (ETFs), bitcoin funds with physical bitcoins as the underlying asset, appear to be an important driver.
#Bitcoin breaks through $70,000 and has reached a new all-time high at $71,300. pic.twitter.com/t4aYZ8GDTM
— Michaël van de Poppe (@CryptoMichNL) March 11, 2024
Parties such as BlackRock and Fidelity must use bitcoin to issue new shares for those funds. In addition, there is an important group, the long-term holders (hodlers) who are not yet going to sell at these current prices. They simply continue to save periodically, an important underlying factor for the price and which causes the bottom of bitcoin to become higher and higher, according to on-chain analysts. Speculation is also increasing that, in addition to MicroStrategy, the next listed company will put bitcoins on its balance sheet. These rumors fuel the ‘fear of missing out’, a strong emotion among investors to miss the boat. That drives up demand. In about 6 weeks, the halaving will also take place, the reward for bitcoin miners will be halved, which amounts to 450 bitcoins mined per day compared to the 900 now.
At the time of writing, the price is rising further. According to Willy Woo, the market is showing more and more signs of a bull market and ‘we’ have now really shaken off the bear that started with the FTX drama.
This structure has all the signs of a full blown #Bitcoin bull market.
– Price ripping
– Lots of coins moving on-chain meaning real investors are buying at higher prices validating it pic.twitter.com/PeKlncZhVn— Willy Woo (@woonomic) March 11, 2024
In a later tweet today he goes into even more detail about the matter.
BTC at 71k puts us *here* in visual of the upper and lower bound models. Upper bound right now is 337k. So this bull market is still early, equivalent to 20k of last cycle.
Last cycle didn’t hit the upper bound due to the flood of paper BTC, this is less dominant this cycle. pic.twitter.com/ZHUeC4FmFn
— Willy Woo (@woonomic) March 11, 2024
Always take significant corrections into account, bitcoin is a very volatile beast. The coin can correct 60% to 80% in a bear market. It is striking that the corrections in the current bear market are lower in percentage terms than in the period 2018-2021.
This #Bitcoin bull cycle has experienced only small corrections so far, thanks to institutional capital flows.
Chart by @AxelAdlerJr pic.twitter.com/XLBScllQG7
— Ki Young Ju (@ki_young_ju) March 11, 2024
Ether above $4,000
Ethereum also writes a price of above $4,000 on the boards.
ETH 4k
— lex (@mskvsk) March 11, 2024
Source: https://bitcoinmagazine.nl/nieuws/bitcoin-schiet-naar-71-500-een-nieuw-record
