Bitcoin has spiked in the last 24 hours, pushing through the $70,500 mark. As of 12:21 UTC, Bitcoin traded at $70,954 with rising volumes.
This follows yesterday’s revelation by Goldman Sachs that its hedge fund clients are showing a growing interest in cryptocurrencies at current prices. Goldman Sachs noted that hedge funds increasing interest in Bitcoin was driven by the massive success of the Bitcoin ETFs, which have seen a massive uptake since they were approved in January.
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Two months in, #Bitcoin ETFs have ~$60B AUM
Gold ETFs had $60B AUM after 15 years pic.twitter.com/RzQEu3Qwea
— Thomas | heyapollo.com (@thomas_fahrer) March 26, 2024
This revelation has excited the market by creating the impression that even more institutional money could be about to FOMO into cryptocurrencies, a factor that could see Bitcoin and other top cryptocurrencies hit highs they have never seen before.
Inflows Into Bitcoin ETFs Are Increasing Again
Even as Goldman Sachs points to incoming institutional FOMO, Bitcoin ETFs continue to record massive inflows. The ETFs had net positive inflows on Monday, and the momentum continued into Tuesday. After several days of negative inflows, the inflows on Monday stood at $15.4 million.
The ETFs are at a net negative in the past week.
Yet, Bitcoin broke above $70,000.
What happens when the ETFs start buying again? 🤯 pic.twitter.com/8ofc52LGiV
— Duo Nine ⚡ YCC (@DU09BTC) March 26, 2024
It indicates that demand for Bitcoin continues to increase, even as supply shrinks, with most long-term holders not selling their Bitcoin stash. A vital indicator of the strong demand for Bitcoin is that despite the continued high outflows from the Grayscale ETF, the price of Bitcoin has been going up consistently since it bounced off the $61,000 price level earlier in the month.
Halving Hype Is Building Up
Investors are also excited that all this demand from institutional money is coming at a time when the Bitcoin halving is just slightly over two weeks away. This means the supply of Bitcoin coming into the market is about to shrink by half. This, coupled with the rising demand, is largely expected to push Bitcoin to prices above $100k, with $1 million per Bitcoin increasingly being taunted as a possibility in this bull cycle.
Overall, Bitcoin is gaining upside momentum due to an announcement by Goldman Sachs that institutional FOMO could be about to hit Bitcoin’s price. This revelation is coming when institutional money flows heavily into Bitcoin through ETFs, and the halving is just over two weeks away.
Bitcoin Gains Upside Momentum As It Approaches $73k, A Bullish Signal
Bitcoin continues the bullish momentum it has built up for the last 4-days. In the last 24 hours, buying volumes have increased, indicating buyers are coming in strongly as Bitcoin approaches its recent highs of $73,500.
If the current bullish momentum for Bitcoin continues, the key level to watch will be the new Bitcoin high of $73,500, now a critical resistance level. If bulls are strong enough to push Bitcoin through the $73,500 resistance, then prices above $80k could soon become a reality, even within the next 48 hours.
However, if Bitcoin bulls lose momentum before pushing through $73,500, a consolidation is likely between the $73,500 resistance and the $61,000 support.
On the other hand, if bears take control, the critical level to watch in the day would be the $61,000 support level. If Bitcoin bears push it through the $61,000 support, then prices between $60k and $55k could be within range in the short term.
Bitcoin Price Prediction – Why $80k Is Within Reach Today
While any of the scenarios above could play out today, the odds are higher that Bitcoin bulls will carry the day and could quickly push Bitcoin to prices above $80k in the next 24 to 48 hours.
One of the factors likely to drive such is growing confidence in Bitcoin after Goldman Sachs news. The statement by Goldman Sachs could see more institutional and retail money flow into Bitcoin in anticipation of FOMO by hedge funds.
Confidence in Bitcoin is also enhanced by the fact that Bitcoin ETF inflows are back in the green and are rising fast. It shows that bullish momentum is back after a slight slowdown.
All this is tied together by the upcoming Bitcoin halving, just slightly over two weeks away. Since the halving is expected to trigger a parabolic rally in the price of Bitcoin, the odds are that the FOMO that has been building up in the last 24 hours will increase, making a case for $80k BTC short-term plausible.
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