Why Bitcoin Price Surged to $70,000 Today

Cryptocurrency enthusiasts witnessed a remarkable surge in Bitcoin’s price, reaching $70,000 and hitting a 9-day high on March 25. This upward momentum not only recovered losses from the previous week but also sparked speculation about a potential new all-time high.

GBTC Spot BTC ETF Outflows Tapering

The recent surge in Bitcoin’s price coincided with a possible tapering of outflows from the Grayscale Bitcoin Trust (GBTC) spot Bitcoin ETF. Despite significant macro headwinds and over 31,000 BTC outflows from GBTC, Bitcoin’s price swiftly rebounded. Interestingly, even with the rapid recovery, Bitcoin continues to leave exchanges, with Coinbase reporting a 9-year low in Bitcoin holdings.

Bitcoin price surge

Institutional Investors Drive ETF Inflows

Institutional investors played a pivotal role in the spot Bitcoin ETF market, with GBTC leading the way with $2 billion in outflows. However, this was offset by $1.1 billion in new spot Bitcoin ETF inflows in the week preceding March 25. CoinShares data revealed that institutional investors injected $12.3 billion into crypto assets in 2024, surpassing the total inflows for the entire year of 2021.

Retail Investors’ Growing Interest

Apart from institutional investors, retail interest in Bitcoin has been on the rise. The number of Bitcoin wallets holding non-zero amounts of BTC has consistently remained above 51 million in 2024. Furthermore, due to sustained month-over-month price growth, only 3% of wallets were at a loss as of March 24.

This surge in non-zero wallets, coupled with Bitcoin leaving exchanges and sustained institutional interest, paints a bullish outlook for Bitcoin’s price.

This article does not provide investment advice. Readers are advised to conduct their own research before making any financial decisions.