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Bitcoin Price: What’s Behind the Current BTC Price Surge
After witnessing a collapse into the $56,000 range, Bitcoin has already succeeded recovery to the $63,000 range and is even better as it was trading at $65,000 today. Has a market capitalization of $1,246,684,717,141 ea trading volume of $26,365,225,796 after witnessing a 48% increase in the number of transactions. Along with that, she kept hers market dominance at 53.3% for days and, following the price recovery, the rest of the cryptocurrencies have also started a similar upward trend.
So, what was the reason behind the current Bitcoin price surge? Let’s talk about it in this blog.
Reasons why the price of Bitcoin is rising
With the current surge, Bitcoin price has reached a new 200-day moving average (MA). Although the price has decreased compared to before, the return of Bitcoin price is worthy of appreciation. For this surge, two events played a significant role. Let’s discuss them one by one.
Bitcoin Spot ETF Receives $63 Million in Inflows
Greyscale The Bitcoin ETF has faced continued declines in its inflows, but that changed last Friday when the Grayscale Bitcoin Trust (GBTC) received $63 million in inflows. THE continuous outflows of the GBTC, the negotiations that have been going on for almost four months have now concluded. These outflows began soon after the organization switched to Spot ETF in January. Total inflow data for Friday stands at approximately $378.3 million.
At the same time, companies like it CoinBaseBlock and MicroStrategy were also reported increase in earnings over the past week, which has become a major factor in the improvement of market conditions and the surge in the price of Bitcoin.
Decline in Bitcoin volatility
According to the Bitfinex Alpha report, That of Bitcoin volatility decreased after the completion of Bitcoin halving event that happened last month. As a result of this decline, an increase in stability has slowly approached the level cryptocurrency market.
Bitcoin’s implied volatility (BVIV) dropped by more than 18%, initially around 74.5%, before dropping to 56.4%. This decrease indicates the market’s adaptation to the new offer. Likewise, Ethereum (EvIV) implied volatility dropped from 61.9% to 52%, a notable difference of 9.9% despite the price surge.
Final thoughts
With the current recovery in Bitcoin prices, traders’ expectations have shifted towards BTC surge above the threshold of 100 thousand dollars. Based on its March performance, which set an all-time high of around $73,750.07, a target of $100,000 isn’t much more difficult. Many of the best cryptocurrencies industry leader they predicted that Bitcoin will rise to $100 by the end of this year or the beginning of next.