Bitcoin hits a new high: Bitcoin (BTC) has surged as much as 6 per cent between Sunday and Monday to surpass $65,000 mark. Earlier in the day, the largest crypto by market cap, crossed the $64,000 mark. Showcasing high volatility in its price, Bitcoin is currently trading above $65,000 level with more than 5.17 per cent gains at the time of writing this news. 

Bitcoin traded 5.68 per cent higher at $65,254 as of 2:20 pm as of Monday, March 4, 2024. 

On the other hand, Ethereum has also crossed the $3,500 level and currently trading at $3,525 with more than 1.6 per cent gain between Sunday and Monday. The sudden surge in the BTC price is driven by strong market inflows, pushing the total market capitalisation of cryptocurrency above $2.42 trillion with Bitcoin contributing $1.27 trillion to the overall market capitalisation. 

According to market experts, the week may see heightened volatility due to several macro events such as US job openings, US non-farm employment change, and the US unemployment rate, which could impact the market further. 

Crediting this rally to strong inflows in spot Bitcoin ETFs, Rajagopal Menon, Vice President, WazirX said, “In the last 24 hours, approximately $59.27 million in Bitcoin positions, including $38.52 million in shorts, underwent liquidation. This upswing is tied to the expanding mainstream adoption, especially influenced by the advent of Spot Bitcoin ETFs, fostering a more resilient holding mindset among investors. It is noteworthy that long-term Bitcoin holders have garnered substantial profits amidst this revitalised surge of enthusiasm.”

“With 13.6 million Bitcoins held for over a year, long-term holders have reaped the most significant profits. Only 0.37 per cent of addresses (193,000) are yet to make a profit at the current price. Experts' predictions reflect the optimistic market sentiment, with price targets ranging from $100,000 to $300,000 per Bitcoin for the rest of 2024,” added Menon.

Edul Patel, Co-founder, Mudrex, also shared the reasons behind the current Bitcoin rally. Patel said, “Clost to 97 per cent of all Bitcoin addresses are currently in a profitable state, marking the first time in over two years, according to IntoTheBlock. The surge in value is linked to the rising mainstream acceptance of spot Bitcoin ETFs and the nearing Bitcoin Halving event.”

Popular memecoins such as Dogecoin, Shiba Inu, PEPE tokens are also riding the Bitcoin rally with Shiba Inu surging close to 20 per cent and PEPE recording a 65 per cent rise in the last 24 hours.