Bitcoin price has now successfully breached the $59,000 level after an incredibly bullish month of February. Also during this period, the market leader has surpassed all expectations and continues to rise at a time when prices are expected to crash ahead of the next halving.
Institutional investors are driving the Bitcoin price higher
One of the main drivers behind Bitcoin’s performance over the past day has been institutional investors. These investors have continued to take advantage of the opportunities presented by the Bitcoin Spot ETFs approved by the Securities and Exchange Commission (SEC) in January.
Although there have been outflows from the Grayscale Bitcoin Trust due to concerns about high fees, inflows have not slowed down. On Tuesday, Bloomberg analyst James Seyffart revealed that Spot ETF inflows rose again, topping $400 million in one day.
In the same vein, trading volumes have increased. Due to rising demand, volumes exceeded $2 billion on Tuesday, the second time in a month that this figure has been exceeded. This increase in both inflows and trading volume shows that institutional investors are willing to take positions in Bitcoin.
Fidelity Investments, one of the issuing companies among the many Spot Bitcoin ETFs available for trading on the market, also recently encouraged investors to invest a small portion of their portfolios in Bitcoin. According to the asset manager, a portfolio allocation of 1-3% in Bitcoin is ideal at the moment.
While an allocation of 1-3% may seem small to the average investor, it is quite large when it comes to institutional investments. These portfolios often consist of billions of dollars, and even a 1-3% allocation could result in hundreds of millions of dollars being funneled into Bitcoin.
BTC dominance is not wavering
Although the price of Bitcoin has risen over the past week, expectations are that Bitcoin will begin to consolidate and then give way to altcoins. However, BTC’s dominance in the crypto market remains quite high, suggesting that the time for altcoins may not have come yet.
Currently, BTC dominance stands at 54.1% after a local peak of 54.4%. This shows that Bitcoin still leads the entire market by a wide margin, and until this dominance diminishes, Bitcoin will continue to lead the rally while altcoins lag behind.
For now, the bulls are focusing on holding the support at $59,000, giving it a bounce point towards $60,000. With the previous all-time high at $69,000, BTC price needs a move of less than 20% from here to reach a new all-time high.
BTC bulls push price above $59,000 | Source: BTCUSD on Tradingview.com
Featured image from CBC, chart from Tradingview.com
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