According to recent findings, bitcoin investors and traders are highly confident in the digital asset’s potential to hit above the $70,000 mark and beyond.
The cryptocurrency, known for its volatile nature, has gained significant attention from investors globally. Many are setting sights on substantial profits amid ongoing market fluctuation.
Investors are focusing beyond bitcoin’s 2021 price record, and even before it has been broken. However, according to data from Deribit and Amberdata, there are growing expectations for a run to hit as high as $70,000, $75,000, and $80,000 by the end of March.
Moreso, bitcoin rose as much as 5.7% to $66,460 on Monday, placing it within striking distance of its all-time high mark. Furthermore, the broader acceptance of Bitcoin and other crypto assets as conventional investment options has increased adoption and demand.
Analysts highlight several causes that could boost bitcoin beyond the $70,000 mark in forthcoming weeks and months, which include growing adoption by institutional investors and favourable regulatory developments.
At the time of writing, bitcoin was trading at $66,894, fluctuating back and forth. Bitcoin is designed to have a fixed supply cap of 21 million coins. This scarcity is deliberate, emulating the scarcity of precious metals like gold and designed to prevent inflation by ensuring that the supply cannot be increased at will.
Despite the bullish sentiment surrounding the digital asset, analysts warn about bitcoin’s vulnerability to abrupt price fluctuations and market volatility. Additionally, analysts pointed out factors that could impact Bitcoin’s price in the short term, including geopolitical tension.
Notably, while traders are bracing for a potential rally to record a new all-time high, the crypto community is advised to stay vigilant. With Bitcoin taking the lead, the crypto asset ecosystem stands poised for further expansion and innovation.
According to market data provider Kaiko, Bitcoin’s trading volume hit $46 billion, considered its highest since 2021. Leading crypto exchange accounted for roughly 50% of the total trading volume, which reached $23.84 billion.
The $46 billion figure represents a notable surge of 650% compared to the $6.616 billion BTC spot trading volume recorded at the start of the year. Earlier this month, the volume stood at $16.46 billion; on March 4, it reached $30.72 billion.