Bitcoin is currently range-bound, with not much activity around it this weekend. As of 11:46 GMT+3, Bitcoin was trading at $61,600, down by 0.78%. Volumes have dropped in the day, too, down by 43% to $21.781 billion.
However, underlying the weekend calm, a lot is happening in the Bitcoin ecosystem that could see Bitcoin break the $69k all-time high this week. One of the biggest news around Bitcoin is Edward Snowden’s revelation that a nation-state has been silently buying Bitcoin and that it will be revealed this year.
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Prediction: A national government will be revealed this year to have been buying Bitcoin—the modern replacement for monetary gold—without having disclosed that fact publicly.
— Edward Snowden (@Snowden) February 28, 2024
This is a big deal as it introduces a new dynamic to Bitcoin. That would mean that countries are starting to see Bitcoin as the new age gold, a store of value, and using it for reserves. It would mean governments are now scrambling to get into Bitcoin at a time when major institutions are getting more aggressive in buying Bitcoin through ETFs.
Only 900 Bitcoin Mined Daily
The real crux of such buying by institutions and governments is that Bitcoin supply is very low and is only getting smaller. At the moment, only 900 Bitcoins are mined every day, and that’s what everyone, from governments and institutions to retail investors, is trying to get their hands on. The supply is set to get even smaller after the halving, which is now only 49 days away. Post-halving, the Bitcoin daily mined supply will drop to 450 BTC.
THERE’S NOT ENOUGH BITCOIN!!
>11,211 Bitcoin bought yesterday by ETFs
>Only 900 Bitcoin produced a dayLow Supply + High Demand = Number go up
Adding to the competition for limited Bitcoin, Edward Snowden believes a nation state is secretly buying Bitcoin 👀 pic.twitter.com/zEgxoGWZfA
— The Bitcoin Express (@The_BTC_Express) February 29, 2024
Such an acutely low supply of Bitcoin means that the price of Bitcoin has way more upside potential than its downside. This may explain why, even on a low-volume day like today, the price is still firmly above $61k, way above the key psychological support level of $60k.
As news of Edward Snowden’s reveal towards the end of last week filters into the market, many more people will be looking to buy into Bitcoin in anticipation of a significant price rally as demand continues to outstrip supply. This and the fact that institutional inflows into Bitcoin continue to rise increase the likelihood of an upside break for Bitcoin in the week.
Snowden’s revelation that a nation-state has been buying Bitcoin, coupled with the continued inflows of money into Bitcoin, has created a favorable confluence of factors that could push Bitcoin to prices way above its all-time highs of $69k within the week.
Bitcoin Price Consolidates, But Fundamentals Point To A Bullish Breakout
Bitcoin price is currently in a consolidation as weekend volumes remain relatively low.
Bitcoin is trading narrowly between the $61,103 support and $62,900 resistance. If buying volumes increase and Bitcoin pushes through the $62,900 resistance, then it could be well on its way to all-time highs in the coming days.
However, if volumes remain low going into the new week, Bitcoin could continue trading in a narrow range between $62,900 and $61,103.
On the other hand, if short sellers take control and push Bitcoin through the $61,103 support, $60k could come into focus. Bitcoin pushing through $60k could see prices within the $58k range come into focus.
Bitcoin Price Prediction – Why This Is The Week Bitcoin Hits $69k
While there is always a scenario where Bitcoin either consolidates or turns bearish, the odds are that Bitcoin could be headed to its all-time highs this week. That’s because not many negative factors could see Bitcoin turn bearish at this point. If anything, most news around it is positive.
For instance, the news of a significant government stocking up on Bitcoin will likely make the case for Bitcoin as digital gold even stronger. It gives impetus to the idea that Bitcoin is becoming the standard money of the world and is likely to add to the number of people buying Bitcoin.
The Bitcoin supply and demand dynamics also point to a sudden and substantial increase in the price. With billions of dollars trying to get a piece of only 900 Bitcoin mined daily, the odds of a breakout that could quickly push Bitcoin to highs of $100k or more in a few candles are high.
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