Rising Bitcoin Demand Sparks Predictions of $70K Milestone

Bitcoin Demand Surges After Months of Muted Activity

Bitcoin’s demand has seen a noticeable return after remaining quiet since May. A 5% rise followed last week’s apparent demand growth of about 177,000 BTC. With its strong recovery, Bitcoin (BTC) shows that the market is headed in the right path.

Recent data shows that Bitcoin rose 11% over the past week, outperforming an index tracking the biggest digital resources that increased by 9.6%. This highlights Bitcoin’s continued strength and high demand in the market.

Increased demand for Bitcoin can be a sign of more room for price growth. According to analyst Moreno, perceived demand for Bitcoin would need to surge between 490,000 and 550,000 BTC in order to reach new all-time highs. The current jump shows that price increases are still possible.

According to charts, the price of bitcoin rose to new record levels in 2020–2021 and 2024, preceded by strong and growing demand. This implies that the apparent demand increase that is currently occurring could push Bitcoin to unprecedented heights once more.

In the US, spot exchange-traded funds (ETFs) have helped drive up the price of Bitcoin. ETFs were net buyers in the first quarter of 2024, bringing in almost 9,000 BTC every day. Bitcoin’s price has risen to unprecedented heights thanks to this flood of capital.

Significant inflows of $458.5 million were made into U.S. Bitcoin ETFs on Wednesday, with BlackRock’s IBIT receiving the largest inflow of $393.4 million. This implies that major institutional investors in Bitcoin are still making significant investments.

Big investors, also known as “Bitcoin whales,” continue to increase their holdings. With the exception of mining pools and exchanges, these powerful holders have increased their overall holdings to 670,000 BTC. For the price trend of Bitcoin, the growth is still above its 365-day moving average.

This week, the funding rate for Bitcoin open interest (OI) weighted perpetual futures hit a multi-month high of more than 0.0136%. This implies that fresh capital is coming into the market, which might lead to more significant price swings and more volatility.

Bitcoin’s future is attracting the trust of polymarket bettors. The odds have increased by 45 percentage points in the past week, and they are predicting a 64% likelihood that Bitcoin will reach $70,000 by October. A significant increase from the previous week, bettors also estimate that there is a 75% likelihood that Bitcoin will hit a new all-time high in 2024.

Dog-themed assets have continued to rise in value following Wednesday’s spike in Dogecoin (DOGE), according to other crypto reports. Elon Musk’s $75 million donation to a Trump-affiliated Political Action Committee was made public. The crypto gains traction as Musk keeps promoting the Department of Government Efficiency (DOGE) on X. On the Asia trading day on Wednesday, DOGE was up 5.8%, while its rival BONK, which is based in Solana, witnessed a surge of about 9%.