#1 Strong Bitcoin Spot Demand
The rally appears to be fueled by robust demand in the Bitcoin spot market, hinting at the potential sustainability of the move. Crypto analyst Daan Crypto Trades (@DaanCrypto) the healthy market dynamics, stating on X, “Funding rates still looking solid. Healthy reset, price slowly grinding up. That’s what we want and how we want to keep it. If longs start aping again while spot bid stops, then that will end up in another flush at some point. For now, all good.” In tandem with the rising spot prices, from Coinglass reveals that $40.7 million in BTC shorts were liquidated today, further propelling the price upwards.
#2 BTC Halving
The imminence of the next Bitcoin halving, slated to occur roughly 12 days from now on April 20, has also probably played a pivotal role. Historically, Bitcoin has experienced a pre-halving price retraction followed by a significant rally leading into the event.
The halving will reduce the Bitcoin reward from approximately 900 coins per day to 450 coins. Skybridge Capital’s Anthony Scaramucci shared his insights with CNBC recently, highlighting the unpriced nature of the upcoming halving and its potential to further drive Bitcoin’s price.
“They’re now saying that the halving is priced in. I don’t believe that. I think Bitcoin has a lot more to go here,” he stated. At current prices, roughly $65 million in Bitcoin ETF inflows per day are needed to buy up the daily mined supply. In 2.5 weeks, that’s only $32.5 million.#3 BTC Follows Gold
The correlation between Bitcoin and gold, both considered safe-haven assets, is another factor contributing to Bitcoin’s price movement. Gold’s strong opening this week, reaching a new all-time high of $2.253, has been mirrored by Bitcoin’s price trajectory. Gold enthusiast Peter Schiff and crypto analyst Michaël van de Poppe have both remarked on the positive correlation between the two assets, suggesting a shared momentum amid economic uncertainties.
Gold bug Peter Schiff via X: “It’s been a volatile Sunday night for gold. After an early $27 sell off, it rallied over $45, hitting a new record high above $2,348. This is an early stage of a major repricing of gold to reflect much higher future inflation. It’s a warning that monetary policy is too loose.” Crypto analyst Michaël van de Poppe : “There we go. Gold opening up with a big new upwards candle and Bitcoin is back to $71,000. Given the strength on commodities and the current price action of Bitcoin, I suspect we’ll see a test of the all-time high coming up.”
#4 Strong Weekly Close
The significance of Bitcoin’s weekly candle close was highlighted by CRG, a renowned analyst, who pointed to it as a contributor to the rally. The ability of Bitcoin’s price to close sustainably above its 2021 high for the second consecutive week signals a strong bullish sentiment in the market.Great weekly close Fresh all time highs this week Source: my plums — CRG (@MacroCRG)
#5 Hong Kong Readies For Spot ETF Launch
Finally, the anticipation of the launch of spot Bitcoin ETFs in Hong Kong may have injected optimism into the market. indicate that major Chinese asset managers, such as Harvest Fund and Southern Fund, managing assets worth over $230 billion and $280 billion, respectively, are positioning themselves through Hong Kong subsidiaries to enter the Bitcoin ETF market, awaiting regulatory approval.
#6 Extra: The “Ethena-Effect”
Ethena Labs has started purchasing BTC as part of a cash-and-carry trade in order to create a “safer” USDe synthetic dollar product for users. The move is being critically observed by the crypto community.
Ethena now holds more than half a billion in BTC hedged across Binance, OKX and Deribit Ready for the halvening ₿ — Seraphim (@MacroMate8)At press time, BTC traded at $72,103.
