Boosted by massive purchases of spot bitcoin ETFs, the queen of cryptos has continued its rise for more than a week, driving the market into the green.
Bitcoin continues its ascent to new highs. At 10:15 a.m. this Monday, March 16, the queen of cryptos is trading above $73,000, gaining 2% in one day, but above all 8% over a week. Bitcoin drove the crypto market to rise, also allowing the second most capitalized crypto, ether, to jump 13% over a week. It does better than the 10 biggest cryptos on the market.
As a reminder, the queen of cryptos progressed after the coordinated attack by the United States and Israel in Iran on Saturday February 28. In times of war, bitcoin can be seen as a more useful asset than other safe-haven assets like gold, because it can be transferred easily as we explained here.
On Wall Street, spot bitcoin ETFs, these financial products which provide exposure to bitcoin, recorded a full week of positive flows, for a total of $767.3 million. For several months, we have noted a correlation between purchases of spot bitcoin ETFs and the rise in the price of bitcoin (and conversely, a fall in the price of bitcoin if traders sell this type of product en masse, in a context of risk aversion).
“Flamber” around 80,000 dollars
“Bitcoin surged on strong spot ETF flows, short selling following liquidations and institutional accumulation by large investors amid low supply after the halving,” Andri Fauzan Adziima, head of research at Bitrue, told trade media outlet The Block.
Bitcoin rose to $74,395 this weekend, returning to its levels from early February. For the analyst, a crossing above $74,000 could cause bitcoin to “surge” towards $80,000. In the same vein, Dominick John, analyst at Zeus Research, considers that a bitcoin which exceeds 75,000 dollars will open the way to a “more marked bullish continuation”. Despite this significant rise, bitcoin remains 42% lower than its historic peak of $126,000, reached on October 6.
