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Bitcoin prices rose at the beginning of the week, and after a lull in gains over the weekend, they moved closer to all-time highs.
The flagship cryptocurrency was last up 3.7% at $65,127.00, according to Coin Metrics. Previously, it rose to $65,606.17, its highest since November 2021. Ether rose 1% to $3,508.24.
Both coins are coming off their best weeks in nearly a year (Bitcoin up about 21%, Ethereum up 16%), but as the market digests two days of sharp outflows from the Grayscale Bitcoin ETF, The weekend rally paused as it was offset by inflows into Bitcoin ETFs. Other “nascent” Bitcoin ETFs.
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Bitcoin is slowly climbing towards an all-time high
“With the creation of these nine new ETFs, big moves tend to occur during a normal trading week rather than on weekends,” said Antoni Trenchev, co-founder of crypto exchange Nexo. “What we’re seeing today could be a repeat of early last week, when Bitcoin skyrocketed by $10,000 in a few days. Consolidation may be ahead.'' Strong demand for these new spot ETFs is driving explosive price movements. ”
Investors have become especially enthusiastic about Bitcoin nearing all-time highs. The price of $65,000 represents about 6% from the November 2021 intraday record of $68,982.20.
Some analysts have suggested that while Bitcoin may continue to rise in the short term, it could fall in the coming weeks as unrealized gains approach extreme levels. According to CryptoQuant, the realized price of Bitcoin remains at only about $42,700.
Nevertheless, long-term investors believe that increased demand for Bitcoin from new exchange-traded funds in the U.S., combined with an expected tighter supply after the April halving event, will push Bitcoin's price to an all-time high. I'm sure it will update the value.
Cryptocurrencies have also seen some buying from the stock market, with the tech-heavy Nasdaq Composite hitting an all-time high on Friday, making it the last major stock index to post a record close this year. David Duong, head of institutional research at Coinbase, said March could be a flat month for Bitcoin, but the cryptocurrency is benefiting from a productivity boom driven by AI and blockchain technology. He said he expects this to continue.
Large cryptocurrencies were more subdued on Monday, but prices of smaller coins, particularly meme coins, rose. Dogecoin rose 5% and Shiba Inu Coin rose 15%. Analysts have pointed to the performance as evidence that retail investors, who have not participated in much of the recent crypto rally, are starting to return to the crypto market.
Cryptocurrency stocks have ridden the Bitcoin wave. Coinbase and MicroStrategy rose 6% and 9%, respectively, in premarket trading on Monday. Among the mining groups, CleanSpark surged more than 8%, Marathon Digital rose about 7%, Iris Energy rose 5.5%, and Riot Platforms rose 4%.
