Analysis of the reasons why BTC prices have soared in recent days

Bitcoin hit $64,000 this morning, then fell 8% in 15 minutes, with Binance showing a drop to $58,700. Volatility in the cryptocurrency market is increasing, but it is only one strong candlestick away from its all-time high! This article explains why Bitcoin has surged recently.

Wall Street’s demand for BTC remains unsatisfied, with BlackRock’s IBIT absorbing $520 million in inflows yesterday, the largest inflow ever for any Bitcoin ETF and the second-largest inflow for any ETF in yesterday’s trading!

IBIT itself took in $520m yesterday, the largest inflow ever for a Bitcoin ETF and the second largest inflow of any ETF yesterday, only IVV took in more cash.. it now has $8bn in AUM, in the top 5% of all ETFs. This means a large portion of the heavy volume is new buying, not arbitrage/algos .

While yesterday’s inflows into new spot Bitcoin ETFs other than BlackRock totaled $182.4 million, dwarfing the inflows into the bellwethers, Bloomberg senior ETF analyst Eric Balchunas noted that any net inflows into new ETFs are significant.

As the price of Bitcoin continues to climb, many are looking for the reason, and the clearest answer is a supply-demand imbalance: demand for Bitcoin from Bitcoin ETFs (and regular spot buyers) exceeds the production capacity of Bitcoin miners.

For those trading with leverage, this market is either a mine or a gold mine, with increased volatility and extremely extended funding rates providing ample opportunities for profitable trades, while the number of liquidations of both long and short positions has also increased dramatically in recent days.