Bitcoin has spectacularly surged to reclaim the $65,000 milestone, igniting the market with a 5.4% increase in the last 24 hours. The current rally places Bitcoin’s market cap at an astounding $1.28 trillion. This leap forward is not just a result of the FOMO effect among institutional investors but is significantly driven by the approval of the spot BTC ETF, which saw the Securities and Exchange Commission’s nod in January. Since then, over 300,000 BTC have been acquired, highlighting a stark supply crunch as daily production lags far behind demand.
The spotlight on the spot Bitcoin ETF has markedly shifted market dynamics, creating a pronounced supply shortage. With the Bitcoin network producing only about 900 BTC daily against the backdrop of an ETF-induced demand for 10,000 BTC, the scales are tipping. This imbalance is set to intensify with the anticipated Bitcoin halving event, which promises to slash the supply by half, potentially setting the stage for unprecedented price escalations.
The road to surpassing Bitcoin’s all-time high (ATH) of $68,789.63 appears within reach, with just a few bullish pushes needed. The sustained bullish momentum could very well see Bitcoin breaking this barrier within the week. Market experts and veterans, buoyed by these developments, forecast even loftier heights for Bitcoin, with predictions soaring as high as $1 million in the long term, considering the impending supply crunch.
Despite the potential for corrections, the underlying fundamentals of Bitcoin provide a solid foundation for its growth trajectory, with the current rally perhaps being a prelude to more significant gains.
