Bitcoin prices continued to rally today, rising above the psychologically important $60,000 level as “sustained momentum” served as the primary driver of the cryptocurrency’s most recent gains, according to analyst Tim Enneking.
The digital currency’s price smashed through the aforementioned price point and approached $64,00o this afternoon, before falling back to roughly $60,500, CoinMarketCap figures show.
When explaining this recent bullish activity, Enneking, managing partner of Psalion, said the following via emailed comments:
“Mainly, this is sustained momentum, further supported by the pending halving but, most importantly, by the excitement everyone is starting to feel regarding BTC taking out its ATH at $69k!”
“That would will be a huge moment for the entire cryptosphere!” he emphasized.
“However, I would not be surprised if we see some consolidation around $60k first,” Enneking noted shortly before bitcoin retreated today.
“Bitcoin’s crossing of the $60,000 threshold represents a significant psychological milestone, drawing closer to its all-time high of approximately $69,000,” Jacob Joseph, research analyst at CCData, said through comments submitted via email.
“This positive market sentiment, paired with substantial and consistent inflows into Bitcoin Exchange-Traded Funds (ETFs)—as demonstrated by BlackRock’s IBIT, which saw daily inflows of $520.2 million this past Tuesday in the United States— has played a pivotal role in Bitcoin’s ongoing momentum and perception,” he added.
Joe Lee, Founder and CEO of DefiDive, also spoke to the key role that these funds are playing in the bitcoin markets.
“Bloomberg data, as presented by Bitmex Research, indicates a net capital inflow into Bitcoin of just over US $6 billion since the wave of Bitcoin ETF approvals earlier this year,” he stated via emailed comments, referencing industry figures contained in a post shared by the X (formerly known as Twitter) handle of BitMEX Research.
“It’s noteworthy that the capital influx is largely attributed to institutional money entering the space,” he added.
“Regulated financial institutions, before January 11th, were unable to hold crypto on their balance sheets without special purpose vehicles,” noted Lee.
“However, the SEC’s approval of the ETFs provided a mechanism for capital to be allocated into crypto within a safe and controlled environment,” he emphasized.
“Considering the nature and speed of institutional capital flows, further gains throughout the year can be anticipated.”
“At DefiDive our conservative estimate is for the $100,000 target to be reached by the end of year,” he stated, offering a bullish price prediction for the world’s most prominent digital currency.
Should the cryptocurrency reach this figure, it will have climbed more than 40% above the previous all-time high set in 2021.
Marc P. Bernegger, cofounder of crypto fund of funds AltAlpha Digital, also offered an optimistic outlook for the digital asset.
“With so many good news reports bringing Bitcoin back in the global news spotlight I wouldn‘t be surprised to see a new all-time-high even before the halving in April,” he stated, referring to the upcoming event that will lower the cryptocurrency’s rate of new supply by 50%.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.
