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Bitcoin Hits $64K on Path to New All-Time High Before Halving

 

Bitcoin’s meteoric ascent persists as it surges to an impressive $64,000 on February 28th, marking yet another milestone in its parabolic rally. The remarkable 10% surge in Bitcoin’s price, propelling it to its highest point in 2024, is largely attributed to investors eagerly anticipating the impending supply halving event. Historically, such events have been accompanied by robust upward price movements.

Adding fuel to the fire is the consistent influx of investments into newly introduced spot Bitcoin exchange-traded funds (ETFs). Analysts believe these investments are playing a pivotal role in shaping Bitcoin’s current price trajectory.

However, amidst the fervent optimism, cautionary voices emerge. Some technical analysts warn of a potentially precarious market structure, citing high funding rates across the market as evidence of extensive leverage usage, which could culminate in a correction driven by liquidations.

Yet, options analysts offer a contrasting perspective, dismissing notions of an overextended market. They argue that the ongoing rally possesses substantial momentum and support. Chris Newhouse, an analyst, highlights data from Bitcoin’s options markets, open interest, and funding rates, suggesting a dynamic interplay between derivatives-driven movements and burgeoning spot demand.

The fleeting moment at $64,000 raises questions: Was it the peak? Following the surge, Bitcoin experienced a flash crash, plummeting to $58,700, likely triggered by a sell wall at the peak and the liquidation of leveraged long positions. Nonetheless, as of the latest update, Bitcoin has managed to recover nearly 5% of the lost ground.

With Bitcoin currently standing less than 13% shy of its all-time high, both retail and institutional investors eagerly anticipate a breach of the record $68,900 mark before the impending supply halving, slated to occur in approximately 52 days.

 

Wasif Shakir

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