The cryptocurrency market is once again in a phase of strengthening after a very volatile weekend, during which the price of Bitcoin significantly dropped after reaching a new all-time high of $68,208.
Following a sharp decline to $64,528 on Sunday, the Bitcoin price forecast indicates a resumption of bullish pressure, confirmed by investors' willingness to buy on the dip.
ETF Inflow Volume Reaches a New All-Time High (ATH)
The net inflow volume of Bitcoin ETFs continues to grow as more institutional investors turn to new investment opportunities. SoSoValue data shows an impressive rise to $12.15 billion—the highest cumulative net inflow.
BlackRock's IBIT leads with the highest daily net inflow, amounting to $139 million on Friday. On the other hand, Grayscale's GBTC experiences the largest outflow of funds—$139 million. Other ETF operators also demonstrate active growth, including Fidelity's FBTC, with a net daily inflow volume of $155 million.
Major Crypto Companies Update BTC Forecasts
The current CEO of Binance, Richard Teng, who took office in November 2023, believes that the price of Bitcoin could potentially reach $80,000 by the end of the year.
Teng believes that "as supply continues to shrink and demand continues to grow," BTC will be trading in a bullish trend in 2024.
Bitcoin is among the select assets that have reached record highs since the beginning of the bullish trend in the fourth quarter of last year, especially in light of interest in Bitcoin ETFs. In addition to Binance, other companies also view Bitcoin and the entire market optimistically.
For example, Standard Chartered has revised its annual Bitcoin forecast to $150,000. Institutional investors, including family offices and charitable foundations, are expected to start allocating a portion of their portfolios to ETF purchases, which, in turn, will increase demand.
The Bitcoin halving is also an event that is likely to lead to rapid growth in Bitcoin to new highs. This event occurs once every four years. Halving controls coin inflation by halving the reward for miners per block.
Why Bitcoin Could Reach $70,000
Bitcoin is hovering slightly below the opening level of the previous day after strengthening above the $68,000 support level. Despite the sudden price drop over the past weekend, bulls managed to regain control, preventing an extremely bearish turning point in the market.
Based on the current technical structure, Bitcoin has the potential to rise above $70,000 this week and approach the all-time high.
Some of the key levels to watch for investors include immediate support at $68,000 and the 20-day exponential moving average (EMA), which is near $68,300.
Several four-hour candle closes above these two key levels will give bulls an advantage. On the other hand, a breakthrough above $70,000 could lead to a new wave of growth driven by FOMO, aiming to reach new all-time highs around $80,000.
If the price of Bitcoin closes below $68,000, the outlook may begin to lean towards selling, creating new uncertainty, especially considering expectations of recovery ahead of the upcoming halving event.
Other support areas below $68,000 to keep in mind include $66,000, $64,000, and the 200-day EMA, which is near $61,909.
Investment Products in Cryptocurrencies Reached a New Peak
Last week, they recorded a record weekly inflow of over $2.7 billion, reaching $2.9 billion. The inflow this week increased the total volume since the beginning of the year to $13.2 billion, surpassing the entire inflow in 2021 of $10.6 billion.
Transaction volumes are mainly concentrated in Bitcoin. Transaction volumes have maintained their record levels from the previous week, reaching $43 billion, which accounts for 47% of the total global Bitcoin volume. However, after price corrections over the weekend, the total value of global ETPs dropped to $97 billion.
At the regional level, inflows in the U.S. amounted to $2.95 billion, while outflows in other regions were less significant. Nevertheless, countries such as Canada, Germany, Sweden, and Switzerland recorded a total outflow of $78 million last week.
Bitcoin alone saw inflows of $2.86 billion just last week, accounting for 97% of all inflows since the beginning of the year. Additionally, short-term transactions with Bitcoin showed the largest inflow in a year for the fifth consecutive week, totaling $26 million.
