Bitcoin reached an all-time high of $73,650 on March 13, surging 44% in 16 days. This rise reflects growing demand for U.S.-listed spot Bitcoin exchange-traded funds (ETFs), which saw a record $1 billion in net flows on March 12. Traders are now speculating whether Bitcoin can hit $80,000, especially as professional traders continue to add bullish leveraged positions.
Some analysts argue that Bitcoin is being used as a hedge against U.S. monetary policy, particularly after a 3.2% increase in the Consumer Price Index (CPI) in February compared to the previous year. This could pressure the U.S. Federal Reserve (Fed) to avoid further interest rate cuts, potentially leading to an economic slowdown. However, if inflation accelerates and the Fed is forced to raise rates, it could negatively impact risk-on assets like Bitcoin.
The recent approval of the U.S. spot Bitcoin ETF in January 2024 has made Bitcoin more accessible to institutional investors. Over the past two weeks, U.S.-listed spot Bitcoin ETFs have attracted nearly $5 billion in capital, solidifying Bitcoin as a top contender for institutional capital. However, some analysts are concerned about excessive leverage in Bitcoin futures, which could lead to liquidations and price corrections.
Bitcoin’s aggregate futures open interest hit a record $35 billion on March 13. Top traders at crypto exchanges have been increasing their net long positions, indicating bullish sentiment. However, data from Bitcoin options markets shows moderate excitement, with the 25% delta skew hovering around optimistic levels but still within the negative 7% range. This suggests that while there is confidence in Bitcoin’s future price, there is also a balanced outlook for potential upside and downside risks.
