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After witnessing a fall to the $56K range, Bitcoin already made a successful recovery to the $63K range and is even better as it was trading at $65K earlier today. It has a market cap of$1,246,684,717,141 and a trading volume of $26,365,225,796 after witnessing a 48% surge in its number of transactions. Along with that, it has maintained its market dominance at 53.3% for days, and as a result of the price recovery, the rest of the cryptocurrencies have also started a similar surge trend.
So, what was the reason behind this current Bitcoin price surge? Let us discuss that in this blog.
Reasons Why Bitcoin Price Is Surging
With its current surge, Bitcoin price has hit a new 200-day moving average (MA). Though the price has declined from earlier, the Bitcoin price comeback is worthy of appreciation. For this surge, two events played a significant role. Let us discuss them one by one.
Bitcoin Spot ETF Receives $63 Million in Inflows
Grayscale’s Bitcoin ETF has faced continuous declines in its inflows, but that changed last Friday as the Grayscale Bitcoin Trust (GBTC) trust received $63 Million in inflows. The continuous outflows from the GBTC have ended now, which has been going on for almost four months. These outflows began right after the organization turned to Spot ETF in January. It makes the total inflows data for Friday to come around $378.3 million.
At the same time, companies like Coinbase, Block, and MicroStrategy also reported increased earnings in the last week, which became an important factor in the improved market conditions and surge in Bitcoin price.
Decline In Bitcoin’s Volatility
As per the Bitfinex Alpha report, Bitcoin’s volatility has declined after the completion of the Bitcoin halving event that happened last month. As a result of this decline, an increase in stability has been slowly approaching the crypto market.
Bitcoin implied volatility (BVIV) has dropped more than 18%, as initially it was around 74.5% but has shifted to 56.4%. This decrease points to the market’s adjustment to the new supply. Similarly, Ethereum implied volatility (EvIV) has declined from 61.9% to 52%, with a noticeable difference of 9.9% despite the price surge.
Final Thoughts
With the current Bitcoin price recovery, traders’ expectations have shifted to see BTC surging above the $100K mark. Based on its performance in March, setting an all-time high of around $73,750.07, a target of $100K is not much harder. Many top crypto industry leaders have predicted to see Bitcoin surge to $100 by the end of this year or the start of next.
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