Why Is Bitcoin Rising? BTC Touched $73K In March

As of March 18, 2024, Bitcoin is down by 5.15% in the last seven days and is trading at $67,966. The world’s largest cryptocurrency surged to a spectacular level of $73,750 on March 12, 2024, surpassing its previous all-time high of $72,738. BTC had been consistently surpassing its all-time highs in the past few weeks, but the rally has stalled following the Dencun upgrade on ETH and a downturn in the net inflow of spot Bitcoin ETFs.

What has made Bitcoin hit the $73k level and how should this rally be approached are questions that have intrigued investors worldwide. Here’s a deep dive into what has led to the sudden rise of BTC, and how the market expects the coin to perform in the future.

Bitcoin Trading At $73,000 In March 2024

Bitcoin fell dramatically due to uncertainties fuelled by the U.S. Federal Reserve’s interest rate hikes post Covid-19 and recovered only in 2023 as the monetary policy stance stabilized toward a pause. The year 2024 has been remarkable for BTC so far with a sudden surge in prices. 

Last month, Bitcoin surged almost 51.09% marking level of $50,000 mid-Feb. As of March 18, 2024, BTC is trading at $67,858 with a market capitalization of $1.33 trillion.

The major reason for Bitcoin prices to rise is strong inflows into the Spot Bitcoin ETFs which the Securities and Exchange Commission approved only recently. According to the information services company, “The Block”, as of Feb. 29, 2024, Spot Bitcoin ETFs witnessed a daily total net inflow of nearly $678.67 million with Blackrock, Fidelity and Grayscale majorly contributing in the Bitcoin ETF volumes. 

According to “The Block”, a business intelligence firm, MicroStrategy, has significantly expanded its digital assets portfolio, surpassing BlackRock. MicroStrategy currently holds 205,000 BTC, valued at approximately $821.7 million, while BlackRock currently holds 197,943 BTC.

On Monday, Britain’s financial watchdog declared that they would allow recognized investment exchanges to launch crypto-backed exchange-traded notes (cETNs), becoming the latest regulator to smooth the path for digital assets. The Financial Conduct Authority (FCA) states that these products would only be available for professional investors, for example credit institutions and investment firms authorized to operate in financial markets. 

Experts believe that the upcoming Bitcoin Halving event in April 2024 has also heightened the market’s sentiment toward Bitcoin reaching new heights. Market participants anticipate BTC to surpass all previous highs and make a remarkable jump to set new records.

Bitcoin Price Movement in the Last Six Months 

(Source: Coinmarketcap)

Bitcoin Price Chart (Past 1 month)

Why is Bitcoin Rising?

Among the key reasons why Bitcoin has surged to reach its highest since 2021 include:

• Strong inflows into Spot Bitcoin ETFs.
• The Bitcoin halving event is anticipated to take place in April 2024. This could be another reason for Bitcoin rising and is expected to further push BTC prices upwards, which might surpass its all-time high before the event. 
• Investor’s expectation that the Federal Reserve could continue its pause on interest rate hikes and possibly raise interest rates as the economy stabilizes. 
• The banking sector’s woes in the U.S. has led digital currency supporters to reiterate the significance of decentralized finance and the need to have full control of one’s own money without the regulation of banks that themselves find it difficult to stay afloat in a tough global economic environment. 

What Lies Ahead for Bitcoin? 

While the future of Bitcoin remains unclear, retail investors can benefit from the current situation by diversifying their portfolios. Investors need to be cautious as upcoming events can bring extreme volatility in Bitcoin prices, which could swing in any direction. 

When analyzing if investors should invest their hard-earned money in Bitcoin, it is important to note that despite the rising value of BTC, it might still crash like it has done in the past. With Bitcoin Halving this year, BTC might soon surpass its all-time high and set a new record. But with unforeseen volatility and as history testifies Bitcoin falling more than a third in value, only time can tell if this current rally is a bull run or a bull trap.

Bottom Line

Nevertheless, Bitcoin’s current surge in value has sparked a debate about the potential for another cryptocurrency rally, elevating the sentiments of the entire crypto community worldwide. All eyes are now focused on Bitcoin’s price levels, wondering whether it will hover around $73,000 or experience a significant jump to surpass its all-time high before the Bitcoin Halving event, despite it being down by 5.38% in the last seven days.