Bitcoin (BTC) Daily Inflows at Two-Year High, BTC Price Could Rise to $83,000
Bitcoin (BTC), the world’s largest cryptocurrency, maintains its market strength, holding firm above $72,000. Investor sentiment remains strong as the Bitcoin price continues to rise to new highs.
Bitcoin Daily Entries Are Highest Since 2021
According to Bitcoin analyst Willy Woo, daily inflows of capital stored by the Bitcoin network have reached $2 billion per day, a level comparable to the last significant bull market. Woo predicts that entries will increase even more this time. He attributes the significant increase in inflows to the opening of spot ETFs, which has significantly increased the flow of capital into the Bitcoin network.
On-chain data also shows small Bitcoin wallets accumulating as whales sell off their supplies. Over the past two weeks, as Bitcoin has consistently hit all-time highs, the number of small wallets holding less than 0.1 BTC has also continued to grow, increasing by 277,000, according to on-chain data provider Santiment. Conversely, wallets holding 1,000 BTC or more decreased, with 105 fewer wallets recorded during the same period.
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BTC Price Likely to Rise to $83,000
Famous crypto analyst Ali Martinez sheds light on a significant development in the cryptocurrency market, with approximately $83 billion flowing into various digital assets. A significant portion of this influx, totaling $75 billion, is directed to Bitcoin and Ethereum, the two leading cryptocurrencies.
Martinez’s analysis based on the Bitcoin MVRV Pricing Bands shows that a key price target for Bitcoin is $83,035. This observation underscores the growing momentum and investor interest in Bitcoin; It is poised to reach important milestones in the valuation of cryptocurrency.
The flow of funds into Bitcoin and Ethereum reflects a broader trend of institutional and individual investors looking to enter the cryptocurrency market.
On the other hand, US stocks also showed strength, despite February inflation figures being higher than expected. Fidelity Global Macro Director Jurrien Timmer underlines an important trend in the financial environment by emphasizing the revival of liquidity regardless of the Fed’s stance.
Timmer notes that overall liquidity has increased steadily since mid-2023, as evidenced by the Federal Reserve’s balance sheet minus reverse repos (RRP) and the Treasury’s cash balance at the Fed (TGA). This upward trend in liquidity coincided with the rise in stock prices. Moreover, with liquidity remaining strong, any major correction in Bitcoin price or crypto seems a distant possibility.
Whether the Fed returns or not, liquidity is increasing again. Overall liquidity, defined as the Fed’s balance sheet, minus reverse repo (RRP) minus the Treasury’s cash balance (NPL) at the Fed, has been increasing since mid-2023, bringing stocks along with it.pic.twitter.com/h50R2N8WgX
— Jurrien Timmer (@TimmerFidelity) March 12, 2024
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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