Bitcoin’s price skyrocketed above $93,000 Tuesday early afternoon, pushing to the highest level in more than a month in a bullish wave of renewed buyer enthusiasm. The cryptocurrency jumped close to 7%, hitting its highest nominal price since early March — $93,400. Moments from the Bitcoin rally Despite the rally occurring at a time when data indicates Bitcoin’s apparent demand is down significantly, in the last month, demand dropped by 146,000 BTC.
The BTC price was facing a critical resistance area at $91,000-$92,000. In the past, this level has been an obstacle to upward movement. Market analysts are especially looking at the “Trader’s On-chain Realized Price” metric. This metric has previously acted as resistance during bearish phases for Bitcoin.
The spike in Bitcoin’s price happened to align with some good news for Bitcoin ETFs. Specifically on Monday, Bitcoin ETFs pulled in an astounding $381 million in net inflows. Thursday ushered in even more good news, with an additional $107 million flooding in. These invigorating volumes hinted at an awakening interest coming from American institutional investors. The return the Coinbase price premium added more weight to this anecdotal trend.
At the same time, broader trends across all markets helped fuel Bitcoin’s rally. The CoinDesk 20 Index gained 5.2%, showing how optimistic traders felt this week about the direction of the cryptocurrency market. In much the same way, the S&P 500 and Nasdaq closed that session up 2.5% and 2.7%, respectively. Conversely, gold took a 1% beating after reversing sharply from its all-time high.
"As capital rotates into safe-haven and inflation-hedging assets, BTC and gold are proving to be key beneficiaries of the exodus from USD risk" - QCP Capital
USDT has increased by $2.9 billion in the last two months alone. This remarkable expansion is responsible for much of the recent optimism in the space. Looking back, Bitcoin bull runs typically occur after USDT issuance outpaces $5 billion in growth. This trend represents a high positive correlation between stablecoin inflows and increasing cryptocurrency prices.
