Bitcoin saw an incredible month in February, adding over $18,000 to its value in a single month. This outperformance has now carried on into the month of March, which has seen the Bitcoin price cross the $65,000 mark for the first time since 2021. As BTC trades throughout the green, expectations remain that the performance will proceed.
Bitcoin Shows Strong Fundamentals
In a recent report shared with NewsBTC via email, the head of research at Matrixport, Markus Thielen, recommend that the Bitcoin price was headed for a further all-time high this week. This report highlighted the BTC price performance through the last yr, along with in February, wherein the price rose an entire of $18,615 in a single month. Furthermore, the analyst identified that despite the slowdown in Bitcoin Spot ETFs that were seen toward the highest of February, it hasn’t affected BTC’s bullishness by much.
The crypto analyst explains that institutional buying shouldn’t be just happening in america either. There has also been a giant uptick in buying volume across other countries, including the likes of Korea where volumes have reached near $8 billion for five consecutive days. Interestingly, the buying shouldn’t be just limited to Bitcoin either as there are also inflows into altcoins and meme coins.
Furthermore, the anticipation of Hong Kong launching its own Spot Bitcoin ETF, along with BlackRock taking the plunge and launching a Bitcoin ETF in Brazil, also proves that there’s quite plenty of demand. So despite the decreased inflows that were seen last week, Thielen explains that if Grayscale’s outflows keep dropping, reaching between $0-$100 million, then he expects further rally for the Bitcoin price.
Thielen also identified that the Untied States debt is growing exponentially and Bitcoin now offers higher macro upside as compared with gold. This plays into the bullish potential of BTC going forth.
“ Previously we’ve shown that 30-40% of the Bitcoin ETF inflows appear to return back out of Gold ETFs and with $80bn of assets-under-management, those re-allocation flows can proceed. We’ve got also shown quite a number of times that Bitcoin has grow to be a greater macro asset than Gold as Bitcoin’s response function towards changes in rate of interest expectations, announcement of wars/conflicts, etc., has grow to be superior (we backtested this).”
BTC Price Headed For Recent All-Time High
Amongst the various facets driving the Bitcoin price identified by the analyst was a giant decrease in the amount of over-the-counter (OTC) BTC available for large institutions. Spot Bitcoin issuers akin to BlackRock are inclined to utilize these OTC desks for purchases with a purpose to scale back the impact of their buying on the price. Nonetheless, these OTC sellers have reported that their balances have dropped 80% throughout the last yr from around 10,000 BTC to lower than 2,000 BTC.
Thielen also points out that the equivalent trend is seen in exchanges where balances have declined across trading platforms akin to Binance and Coinbase. Each of those, which can be currently the Bitcoin trading powerhouses of the world, saw an entire of 48,000 BTC leave their balances in a month.
Given these developments, the crypto analyst explains that investors often usually are not price-sensitive in the meanwhile. So, the expectation for this week is that Bitcoin makes a recent all-time high. If this happens, then the market could see BTC tap $70,000 this week.
BTC price surpasses $65,000 | Source: BTCUSD on Tradingview.com
Featured image from Capital.com, chart from Tradingview.com
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