Just 1% separates Bitcoin’s current price of $68,300 from its all-time high of $69,000.
On social networking site X, fans of bitcoin (BTC) were not short on optimistic remarks due to the cryptocurrency’s explosive increase in value over the past week, which is quickly reaching a new all-time high price of $69,000.
According to CoinGecko, as of the time of publication, the price of Bitcoin is $68,300, up 7% from the previous day.
But a lot of the discussion in the last day or so has focused on how Bitcoin has behaved following its new all-time high.
Once, Bitcoin’s ATH doubled in just ten days
According to Bitcoin researcher Dylan LeClair, in a March 4 X post, Bitcoin surged 158% in March 2013, from $34 to $88 over the month, including a 10-day period during which its price doubled.
According to CoinGecko, a few months later in November 2013, Bitcoin smashed its previous all-time high established a month earlier and soared from $200 to $1,000.
In December 2020, a similar trend surfaced once more. CoinGecko reports that on December 16, 2020, Bitcoin broke through its previous high of $19,665, and on January 8, just 23 days later, it doubled.
According to CoinGecko data, it eventually kept rising and reached $63,580 on April 14, 2021, a 222% or three-fold rise in just 120 days.
The Halving of Bitcoin is Not Even Imminent
One of the founders and chief strategist of HashLabs Mining, Jaran Mellerud, claims that the halving event that took place in May 2020, a few months prior, contributed to the price increase that occurred in late 2020.
Nevertheless, Bitcoin has already approached its all-time high more than a month ahead of the planned halving in 2024.
Mellerud previously stated that he believes Bitcoin will see a significant upswing in value shortly after the impending halving, which is set to take place on April 20, 2024.
Extreme Greed: The Bitcoin Index Hits Ninety
In the meantime, Bitcoin now has the highest score since February 2021 of 90 out of 100 on the Crypto Fear & Greed Index. Google searches for “Bitcoin” have also increased throughout the past two weeks as the price of the cryptocurrency has surged above $50,000 and $60,000.
A variety of data sources, such as volatility, market momentum and volume, social media, Bitcoin dominance, and Google Trend data, are used to calculate the weights of the fear and greed index.
However, the index’s creator cautions that excessive greed on the part of investors may indicate that a market correction is overdue.
Demand For Bitcoin is Only Growing When ETFs are Included
In contrast to earlier bull markets, the demand for Bitcoin is currently being fueled by the recently introduced spot Bitcoin exchange-traded funds (ETFs) in the US.
BitMEX Research reports that since January 11, net inflows into Bitcoin ETFs have totaled $7.35 billion, using data as of March 1.
The best performer is BlackRock’s iShares Bitcoin Trust (IBIT), which last week became the fastest-growing ETF in US history to achieve the $10 billion asset milestone.
U.S. investor Ric Delman forecast that by the end of 2025, flows into Bitcoin ETFs will have reached at least $150 billion in an interview with CNBC on February 14.
Delman provided evidence for his estimate in the form of a recent poll that found 77% of independent financial advisors intend to include Bitcoin at an average allocation of 2.5% in their current portfolios. He then multiplied this by the $8 trillion size of the financial advising industry.
Delman added, “And that’s just independent advisors.” “The institutional investors, regional broker dealers, and wirehouses are not included in it.”
Chief investment officer of Bitwise Matt Hougan recently stated that once the “big wirehouses” begin to offer Bitcoin ETF transactions, there may be a “even bigger wave” of institutional capital to follow.
The ratio of Bitcoin purchased by ETF issuers to Bitcoin mined has also been brought up by others, notably Hougan. On certain days, the ratio may even approach 10, indicating that there is a greater demand than supply for bitcoin.
This supply-demand dynamic was described by Hougan as being “off the hook.”
Hougan stated that there is “too much demand and not enough supply,” which would probably cause the price of Bitcoin to rise “substantially.”
According to Companies Market valuation, Bitcoin is currently the ninth-largest asset by market valuation and is just 0.9% away from surpassing Silver, which has a $1.356 trillion market cap.
According to Fiat Market Cap, Bitcoin is also getting more valuable when compared to the values of state-issued currencies. It recently overtook the Swiss franc in 13th place.
