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The Surge of Bitcoin Value
Bitcoin has experienced a decrease of 2.555% in value over the past 24 hours, currently being traded at $69,295.04. However, this decline is overshadowed by a substantial increase of 4.67% over the last 7 days and an impressive surge of 145.02% over the past year. The primary reason behind this significant spike in value can be attributed to the recent approval of the Spot ETF by the US SEC, which came into effect in January 2024. Additionally, there has been a noticeable rise in on-chain exchange volume, contributing to a profitable trend.
Factors Driving Bitcoin’s Growth
Looking ahead, it is widely expected that Bitcoin’s value will continue to rise following the upcoming Halving event. Several key factors have played a role in the recent uptrend of BTC, including increased deposits and withdrawals on various exchange platforms. Bitcoin has been able to maintain a strong consolidation within the price range of $64,000 to $73,000. Notably, the daily trading volume reached a peak of $14.1 billion in the middle of March, closely resembling the market trends of 2020-2021.
Spot Volume Trends
In May 2021, the Spot Volume reached $20.5 billion, hitting a new record high of $20.8 billion in March 2023. As of April 2024, approximately $7 billion in volume has been recorded, hinting at a possibility of surpassing the previous month’s figures in the remaining days of April. The momentum of Spot Volume has experienced fluctuations, transitioning from a bear run between May 2022 and December 2022 to a bullish market from January to April 2023, and currently showing positive signs from November 2023 to April 2024.
Exchange Flow & Trade Volume
The Exchange flow momentum has been following a similar trajectory, with the 30-day Moving Average (MA) standing at $8.19 billion as of April 06, 2024, and the 180-day MA at $4.59 billion. Notably, the Spot Trade Volume has surpassed ETF Trade Volume, with Spot Trade totaling $18.6 billion compared to ETF Trade at $7.9 billion. This trend was evident in the comparison between March and April this year, showcasing the dominance of Spot Trading over ETF Trading.
Profit-Taking and Market Dynamics
An analysis of profit-taking behaviors has revealed three key events within the market trend: the increase in profit-taking when the All-Time High (ATH) is breached, major profit-taking leading to market peaks, and the correlation between profit-taking and incoming demand determining new capital inflows. Bitcoin’s realized profit, currently at 1.8% as of March 2024, has shown a positive trend with potential for growth, as new investors enter the market, balancing the demand among long-term holders.
Anticipating Bitcoin Halving
All eyes are currently focused on the upcoming Bitcoin Halving event, tentatively scheduled for April 20, 2024. This event is anticipated to have a significant impact on the market dynamics and Bitcoin’s value, further shaping the future trends in the cryptocurrency landscape.
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