- Bitcoin hits a record high of $69,170, before falling to a 6-day low of $59,000.
- BlackRock’s Bitcoin ETF Sets Record Volume of $3.7 Billion Amid Volatility.
Bitcoin, the leading cryptocurrency by market capitalization, rose to a new all-time high of $69,170, marking its first record high in over two years. The jubilation was short-lived, as BTC suffered a sharp decline, falling to a 6-day low of $59,323. This volatility has led to a 7% decrease in overall market capitalization, underlining its unpredictable nature.
Bitcoin’s rollercoaster ride reflects the complex interplay of factors that determine its value. In particular, inflows into Bitcoin Exchange Traded Funds (ETFs) in the United States, speculation in derivatives markets, and a potential decrease in the token’s supply growth have contributed to this year’s significant rally. However, this surge has also weakened investor positions, raising fears of a potential market pullback.
Adding to the turmoil, a Bitcoin “whale” — a term for investors holding large amounts of the cryptocurrency — has resurfaced after 14 years, transferring 1,000 BTC (worth about $67.1 million) to the Coinbase exchange. These coins, minted in 2010 when the value of Bitcoin was less than $0.28, have brought in an estimated profit of more than $60 million. This move is speculated to be a catalyst for the sudden market downturn.
Meanwhile, over the same period, BlackRock’s iShares Bitcoin Trust ETF shattered its daily trading volume record, reaching $3.7 billion as Bitcoin hit its peak. This increase in trading volume, a clear indicator of growing mainstream interest in the cryptocurrency, surpassed the previous record of $400 million.
Will Bitcoin Bulls Recover?
Currently, Bitcoin is trading at $66,115.65, down 1.16%. The trading volume amounted to $99 billion, marking an increase of 31%. Amid these developments, analyzes of Bitcoin price movements paint a bullish picture. The daily chart shows an uptrend, with the 9-day simple moving average (SMA) positioned below the trading price at $62,919. However, the daily Relative Strength Index (RSI) suggests an overbought condition, sitting at 72.
BTC price chart, source: TradingView
If the bulls gain the upper hand, BTC could once again reach a new all-time high (ATH), surpassing $69,300. On the contrary, if the bears gain the upper hand, the price could fall to $60,735 and $59,627, respectively.
