This week, Bitcoin has risen to a new high of $122,500, driven by several positive factors.
Factors Driving Bitcoin's Price Surge
Bitcoin surged past $119,000 and $120,000 from Sunday to Monday, showing a 30% rise since the beginning of the year. Key factors contributing to this surge include favorable trends on the blockchain, increased demand among large investors, and a hopeful outlook on new regulations.
Data on Long-Term Holders
According to Glassnode, long-term holders are currently buying more Bitcoin than miners are producing. Wallets with less than 100 BTC are accumulating around 19,300 BTC every month, while miners are only producing about 13,400 BTC monthly. This ongoing accumulation by various holders is leading to a supply shortage that could drive prices higher.
Inflow into Bitcoin ETFs
Recent data from Farside Investors indicates that US spot Bitcoin exchange-traded funds (ETFs) have attracted over $2.7 billion in net inflows this week, with daily inflows exceeding $1 billion on both Thursday and Friday. BlackRock’s iShares Bitcoin Trust (IBIT) has significantly contributed to this trend, bringing in more than $1.7 billion in inflows over the past week.
In conclusion, Bitcoin continues to show strong growth, fueled by increased investor interest and a favorable combination of factors, creating potential for further price increases.
