The Bitcoin (BTC) price just hit new all-time highs to the north of $69,000 on Coinbase.
As per TradingView, BTC/USD changed hands for as much as $69,324.58 on the exchange, before abruptly dropping back towards $65,000.
The immediate drop back from all-time highs shouldn’t come as a surprise.
Many investors and traders would have viewed Bitcoin clinching new all-time highs as a signal to take profits.
Bitcoin has been pumping as of late on a surge of new demand from spot Bitcoin ETFs.
Net inflows to the ETFs hit a new record high on Monday as FBTC inflows surged and GBTC outflows subsided.
Bitcoin ETF gross inflows hit all-time high high thanks to record surge in Fidelity’s FBTC. GBTC outflows ease for 3rd day pic.twitter.com/X7HQpU5FeG
— zerohedge (@zerohedge) March 5, 2024
As per Lyn Alden, around $8 billion in cumulative net inflows into the new ETFs since January has contributed to a $300 billion rise in bitcoin’s market cap.
About $8 billion in cumulative net ETF inflows (along with some other opaque exchange inflows) contributed to bitcoin rising in market cap by well over $300 billion.
This is because during bear markets, coins rotate into long-term hands with a low propensity to sell. pic.twitter.com/M7tjikBfFP
— Lyn Alden (@LynAldenContact) March 5, 2024
The sudden surge in new ETF demand comes ahead of an imminent Bitcoin supply shock.
Bitcoin’s “halving” in April will see the rate of new BTC token issuance to miners fall by 50%.
That will substantially ease sell pressure from Bitcoin miners.
Global liquidity conditions are also set to be a major tailwind for the crypto sector in the coming years.
The Fed is expected to start cutting interest rates this year.
And most other major central banks are also expected to begin easing policy imminently.
As a result, investors and swing traders are likely to view the latest drop in the Bitcoin price back from all-time highs as a good opportunity to buy the dip.
Bitcoin Price Prediction – $100,000 Coming This Month?
Assuming traders aggressively step in to buy the current price dip, a return to all-time highs is highly likely.
Once Bitcoin closes significantly above its 2021 former record levels at $69,000, that could be the signal for a new wave of buy pressure.
In the absence of any resistance levels from past price action, traders will instead focus on major “round numbers”.
For instance, once $69,000 goes, the next levels traders might target could be $75,000, $80,000, $90,000 and then $100,000.
Could Bitcoin conquer all of these levels, including $100,000, this month?
Well, history shows us that once Bitcoin breaks out the fresh all-time highs, its rallies tends to accelerate.
For example, after breaking above the December 2017 record highs at $19,800 in December 2020, Bitcoin rallied nearly as high as $65,000 within a few months.
The story was similar in 2017 when Bitcoin rallied above its 2013 record highs.
Likewise, the Bitcoin rally in 2013 also accelerated after the 2011 record highs were broken.
Positive fundamentals (ETF demand, halving, improving liquidity) support the argument that this time will be no different.
Bitcoin could easily hit $100,000 this month.
Bitcoin Alternative to Consider
Bitcoin could easily clinch gains in the region of 2x from current levels in 2024.
Thats impressive, but many risk-tolerant investors will be looking to turn a higher profit.
One high-risk but potentially high-return Bitcoin alternative to consider is a new token called Green Bitcoin (GBTC).
Green Bitcoin (GBTC) is a project that lets users earn money by predicting Bitcoin prices.
It also has a green aspect that makes it appealing to the cryptocurrency community.
All of this has led to the presale raising close to $2 million – and that figure is still growing.
Check out GBTC here
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.