The rest of the market operates with gains of up to 13% led by Dogecoin, followed by Ripple up 5.7%.
Bitcoin’s trend is positive: in 7 days, the rise is more than 26% and its dominance rate is above 52% thanks to a total capitalization of 1.27 trillion dollars. Just a month ago, bitcoin was barely over $40,000 after a rather disappointing second half of January.
Bitcoin: why is the rally continuing?
According to some analysts, the factors that explain this latest rise in prices remain the same as those observed in recent times. Namely, a feeling of excessive euphoria, the proximity of the ‘halving’ (halving) of the Bitcoin network, a growing demand from institutional investors and, related to the latter, incredible activity in spot exchange-traded funds (ETFs).
In this sense, the iShares Bitcoin Trust (IBIT) by BlackRock accumulated three consecutive days with inflows of more than $500 million, two of them over 600 million. In fact, this fund alone managed to offset a terrible last day of February for Grayscale Bitcoin Trust (GBTC), which doubled its outflows to almost $600 million on February 29. Eric Balchunas, ETF analyst at Bloomberg, highlights that the BlackRock fund has achieved inflows of $10 billion in total and has raised its assets under management to $7.2 billion.
On the other hand, analysts point out that the departures observed in GBTC They could be because cryptocurrency lender Genesis began or accelerated the pace of selling its fund holdings, taking advantage of the bitcoin rally. Genesis received bankruptcy court approval on Feb. 14 to sell 35 million GBTC shares, but outflows had leveled off over the past two weeks until Thursday’s peak.
Why analysts are not confident the rally will continue
Be that as it may, the truth is that It seems difficult for the queen cryptocurrency not to reach new all-time highs in the coming weeks. In addition, many experts predict bitcoin above $100,000 at some point this year, given the confluence of catalysts and the current trend of the leading digital asset. However, others They are somewhat more cautious and point out that the cryptocurrency could be developing a correction movement given its high overbought levels.
From a technical point of view, Javier Molina, senior market analyst at eToro, highlighted the “breakout of the $53,000 zone” and the “impulse to the reference of 63,000.” “The surpassing of 59,000 has been devastating and shows the current state of euphoria. After that impulse, prices have gone into a consolidation movement, generating brutal movements in the rest of the ‘altcoins’,” he explained. In this sense, it should be noted that andEthereum (ETH) has risen to $3,500 and other assets such as solana (SOL), XRP or cardano (ADA) have accumulated returns of between 19% and 40% in the last week.
“It is these moments of FOMO (fear of missing out) and the start of the arrival of delayed investors, which should keep us alert and take extreme risk management. Losing the $60,500 will open the door for us to go look for the $59,000 that, “If lost, they pave the way for a possible decline to 53,000. Above, exceeding 63,000 will mark the path to historical highs. Overbought, excess optimism and the beginning of inflows as negative catalysts,” concludes Molina.
Source: Ambito
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