Bitcoin is currently trading flat at around $49,800. As of 10:40 AM GMT+3, Bitcoin’s trading volumes were down by 11.07% to around $34.149 billion.
Bitcoin looks strongly bullish as institutional money continues flowing into the asset. Blackrock is one of the more notable institutional players aggressively buying Bitcoin.
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Yesterday, Blackrock bought 95,276 BTC in less than 24 hours, bringing the fund’s total Bitcoin holdings close to 1 million BTC.
Breaking: Today #Blackrock could hit 1,00,000 #Bitcoin Milestone $IBIT Bought 95,276 BTC in 24 trading days.
Yesterday Inflow:$GBTC Inflow: -1920 BTC ( $95.03M )
9 New ETFs Inflow: +12,072 BTC ( $398 )
Net Flow: 10,152 BTC ( $493M )Total Flow since ETFs Launch:
Grayscale… pic.twitter.com/xsJrli15s3— Crypto Patel (@CryptoPatel) February 13, 2024
SMEs, Too Buying Up BTC
Interestingly, it is not just the big players like Blackrock that are currently accumulating Bitcoin, SMEs are also buying Bitcoin in huge amounts. For instance, Blockhenge Inc. recently bought 3 Bitcoins, a range that many small companies are buying Bitcoin.
This is a big deal as it points to the growing interest in Bitcoin when the price is surging, and the supply of Bitcoin is getting small. For context, recent data shows that more than 79% of Bitcoin’s total supply has not moved in over 6 months. This means those buying are now unfazed by the recent price rally and are holding on for higher gains.
This is quite evident in the metrics of companies, such as MicroStrategy, which have been accumulating Bitcoin aggressively recently. MicroStrategy was aggressively buying Bitcoin during the crypto downturn and is reaping big. The company’s unrealized Bitcoin profits now stand at $3.5 billion after the rally that has pushed Bitcoin to $50k.
Retail and institutional investors are increasingly bullish that with the upcoming halving, Bitcoin could be set for new all-time highs. The break through the $50k mark indicates that Bitcoin could soon be headed towards its last all-time highs of $69k and then make new all-time highs.
The ongoing accumulation by institutional money is a crucial driver to the current Bitcoin price rally and gives it the impetus for even more upside.
Bitcoin Price Consolidates, But Increased Buying Volumes Point To More Upside
Bitcoin’s price indicates a consolidation after a rally that saw it briefly cross the $50,000 mark.
If buying volumes increase and Bitcoin starts trading up again, it could face significant resistance at $50,395. If buyers are strong enough to break this resistance, Bitcoin could be headed to $60K, potentially retesting its all-time highs before the upcoming halving.
However, if Bitcoin fails to break the $50,395 resistance, two scenarios could play out in the short term. The first one is a continuation of the consolidation pattern that has started between $50,395 and $48,323.
Conversely, if Bitcoin bears take control in the short term and break $48,323, Bitcoin could easily test $46900 in the short term.
Bitcoin Price Prediction: A Rally To $60k More Likely In The Week
While Bitcoin is consolidating with a potential breakout in any direction, the odds favor an upside breakout and a rally to $60k.
One of the pointers to an upside break is the hype around the halving. Historically, Bitcoin rallies post-halving due to the supply shock that comes with the event. Now that Bitcoin has come close to its all-time highs even before the halving, there is a chance that upside momentum will accelerate as investors rush to not miss out on an impending halving-driven rally. This makes a strong case for Bitcoin easily testing $60k or more short term.
The case for a breakout towards $60k is also enhanced by the fact institutional money is aggressively buying Bitcoin. For instance, Blackrock bought nearly 100k Bitcoin in just a day. This is advantageous to the price of Bitcoin in two ways. First, these big buyers are chasing a shrinking supply, a plus to Bitcoin’s momentum. Secondly, institutional accumulation ahead of the halving could draw in retail money sitting on the sidelines.
Overall, there is little that could turn Bitcoin bearish at this point. With the ongoing price action, some analysts believe that Bitcoin could lead the entire crypto market to a market capitalization of over $10 trillion by 2025.
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