Bitcoin has been on a meteoric rise, with February seeing an impressive surge in value. This bullish trend has spilled over into March, as the price of Bitcoin has soared past the $65,000 mark. The head of research at Matrixport, Markus Thielen, predicts that Bitcoin is poised to reach another all-time high this week. The recent report highlights the exceptional performance of Bitcoin over the last year, particularly in February when the price surged by $18,615 in just one month.
Thielen notes that institutional buying of Bitcoin is not limited to the United States, with other countries such as Korea experiencing a surge in buying volume. In addition to Bitcoin, there has been increased interest in altcoins and meme coins, indicating a broader trend towards digital asset investment. The anticipation of Hong Kong and Brazil launching their own Bitcoin ETFs further underscores the growing demand for cryptocurrencies.
Thielen points out that Bitcoin now offers better macro upside compared to gold, as the United States debt continues to grow exponentially. With institutional investors increasingly reallocating funds from Gold ETFs to Bitcoin, the crypto asset’s superior reaction function to changes in interest rates and geopolitical events bodes well for its future performance.
One of the key factors supporting Bitcoin’s price surge is the significant decrease in available over-the-counter (OTC) BTC for large institutions. OTC sellers have reported an 80% drop in their balances over the past year, indicating a supply constraint in the market. Additionally, major exchanges like Binance and Coinbase have seen a decline in their BTC balances, further fueling investor sentiment towards Bitcoin.
Given these developments, Thielen suggests that investors are not price-sensitive at this time, as the expectation is for Bitcoin to reach a new all-time high. If this milestone is achieved, Bitcoin could potentially surpass the $70,000 mark this week. The overall sentiment in the market remains bullish, with growing institutional adoption and global demand driving the price of Bitcoin to new heights.
Overall, the outlook for Bitcoin appears optimistic, with the crypto asset continuing its upward trajectory fueled by institutional interest and supply constraints. As Bitcoin solidifies its position as a superior macro asset compared to gold, investors are increasingly turning to digital assets as a viable investment option. While market volatility and regulatory challenges remain a concern, the long-term potential of Bitcoin as a store of value and investment asset seems promising.