Bitcoin New All-Time High Coming This March: QCP Capital

• Bitcoin’s resurgence to $52,500 marks a significant milestone, with its market cap surpassing $1 trillion, overtaking major companies like Tesla and Walmart.
• Spot Bitcoin ETFs witness unprecedented inflows, with 43,300 Bitcoins added in the past four days alone, surpassing the total inflows of the first four weeks of trading.

Bitcoin bulls seem to be absolutely unstoppable at this point as BTC price skyrocketed over 5% for the second consecutive day shooting all the way to $52,500. It is the first time since December 2021 that Bitcoin investors have seen this level again. The solid rally in the Bitcoin price has also led to major liquidations of short positions in the last 24 hours.

Amid the recent price rally this week, Bitcoin’s market cap has also soared past $1 trillion. With this, the Bitcoin valuation overtakes some of the top companies like Tesla, Walmart, and Berkshire Hathway.

On the other hand, Ethereum (ETH) has witnessed a significant surge, surpassing the $2,800 mark to settle at $2,816, marking a notable 6.89% increase over the same period. Alongside Ethereum, the top ten alternative cryptocurrencies (altcoins) have also surged, ranging between 5-10%.

According to market data provided by CoinGlass, there has been a considerable liquidation of $225 million across the entire cryptocurrency market within a 24-hour period. Of this sum, $45.15 million accounts for liquidated long orders, while $180 million pertains to liquidated short orders. This surge in liquidations highlights the intensified trading activity and volatility observed in the cryptocurrency market amid the current period of price escalation.

Massive Spot Bitcoin ETF Inflows, Gold ETFs See Outflows

One major factor behind the Bitcoin price rally has been the record-breaking inflows into the spot Bitcoin ETFs this week. Spot Bitcoin exchange-traded funds (ETFs) have seen a surge in net inflows over the past four days, surpassing the total inflows recorded during the initial four weeks of trading.

Data from the Bitcoin tracking platform Apollo reveals that the 10 spot Bitcoin BTC ETFs have attracted 43,300 Bitcoin in net inflows over the past four days. At current prices, this amount is valued at $2.3 billion. By comparison, it took these funds 20 days of trading to accumulate a similar amount of 42,000 Bitcoin in inflows.

On the other hand, ever since the launch of the Bitcoin ETFs last month, the Gold ETFs have witnessed consistent outflows. This is a clear sign of capital rotation from Gold to Bitcoin.

In 2024, gold-tracking exchange-traded funds (ETFs) have experienced significant outflows, amounting to billions of dollars. According to a post by Bloomberg intelligence analyst Eric Balchunas on Feb. 14, the 14 leading gold ETFs have collectively witnessed outflows totaling $2.4 billion thus far in 2024.

Meanwhile it’s a pretty bad scene right now in the gold ETFs category… via @SirYappityyapp in our just published weekly flow note pic.twitter.com/C0T17JZpiA

— Eric Balchunas (@EricBalchunas) February 14, 2024

Among these ETFs, only three have seen minor inflows during the same period: VanEck Merk Gold Shares, FT Vest Gold Strategy Target Income ETF, and Proshares UltraShort Gold. The largest outflows were observed from BlackRock’s iShares Gold Trust Micro and iShares Gold Trust, which saw $230.4 million and $423.6 million exiting, respectively.

BTC All-Time High Coming Next Month

Apart from the activity in the spot market, there has been a notable increase in the purchase of BTC call options. In the span of just this week, approximately $10 million has been allocated towards premiums for call options. These options have strike prices ranging from 60,000 to 80,000 and expiry dates between April and December.

The significant influx of capital has led analysts at QCP Capital to predict that Bitcoin could potentially surpass its previous all-time highs by the end of March. This trend underscores the strengthening investor confidence and bullish sentiment prevailing in the cryptocurrency market.