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Bitcoin price recovers from post all-time high slip, but will the rise sustain?

By:
on Mar 6, 2024
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  • News just in: BTC has just recovered from its slip post the all time high of yesterday.
  • But how? And why did it happen so fast?
  • We spoke to two experts to get answers.

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Bitcoin’s new all-time high of $69,200 on Tuesday March 5th quickly turned into a selloff, with the Bitcoin price quickly falling almost $10,000 to reach $59.700 USD to one coin.

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Bitcoin’s price in USD

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However, news just in from Bitcoin Archive on X (@BTC_Archive), says that the crypto is back above $66,000 and now has a $1.3 trillion market cap.

At the time of this article going to press, that price had rallied further to $67,178.50 in USD.

8.5 billion in inflows

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That’s not all from Bitcoin Archive, who also posted recently on X that Bitcoin ETFs have now had $8.5 billion in net inflows since being approved earlier this year.

Predicted, but still a surprise

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With all the excitement around the new all time high Bitcoin price that’s been brewing this week, a number of experts predicted that Bitcoin’s price would face a fall as soon as it had topped $69,000. Read our analyst’s prediction from yesterday, for example.

So why has Bitcoin rallied so fast?

The first possible reason for Bitcoin’s rally

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Tom Cohen, head trader at Algoz Technology, believes this is due to continued bullishness from the approval of Bitcoin ETFs and their significant demand:

Currently, these Bitcoin ETFs are buying 9000 BTC coins a day and the miners are producing just 900 coins a day. Demand is dramatically more than supply. Hence the big price increase. Leading up to a halving of BTC, which will occur in April this year, there have been 3 previous halving bull markets and data suggests this fourth one has only just begun.”

The second likely reason for Bitcoin’s rally

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 Rania Gule, market analyst at XS.com, believe it may have more to do with the lead-up to the Bitcoin halving event occurring soon:

Occurring approximately 60 days before the Bitcoin halving event, this stage is marked by an increase in Bitcoin’s price due to investor anticipation. Prices exhibit high volatility as traders follow a strategy of buying before halving and selling quickly. Caution is advised, as a temporary price drop might occur before the halving – a phase I believe the market is currently in.”

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