Jane Lubale
Bitcoin has had some rough days, with its prices crashing, tagging along the entire crypto market. They say when Bitcoin sneezes, the entire digital asset market catches a cold. BTC has been moving away from its all-time high of $73,750.07. However, analysts assert that the correction is a necessary step in preparing for further bullish momentum. They claim that as long as the price remains within the range of $60,000 to $70,000, the overall outlook remains positive. Now that Bitcoin price is slightly up today trading between $65,402.37 and $69,291.25, we delve into the reasons for the turnaround in its value.
Bitcoin Price Market Performance
In the past 24 hours, Bitcoin price has increased by 2.07% to hit $67,112. According to CoinMarketCap the coin is still claims its position as the leading cryptocurrency when it comes to market cap which it is mounting to $1.32 trillion. It has recorded a trading volume of $36.21 billion in the past day, having increased by 8.33%.
Since it began trading, BTC has undergone fluctuations in its value. It reached its all-time of $73,750.07 on March 14, 2024, but has since dropped by approximately 8.35%.
With a circulating supply of 19.67 million BTC, the coin has a limited supply of 21 million BTC, contributing to its market value because of scarcity as a significant factor.
This data demonstrates the continued importance of Bitcoin in the crypto world, and its resilience in the volatile market. As the first cryptocurrency, BTC remains a popular crypto choice amongst traders and investors.
Top Reasons Bitcoin Price is Rising Today
Just like any other industry market, prices in the crypto market don’t just rise or fall for no reason. Various factors propelled BTC price to rise as discussed next.
1. DWS Group Partnership for Exchange-traded commodity (ETC)
DWS Group has partnered with Galaxy Digital Holdings Ltd. to introduce two new Xtrackers exchange-traded commodity (ETCs): the Xtrackers Galaxy Physical Bitcoin ETC securities and the Xtrackers Galaxy Physical Ethereum ETC securities. These ETCs were listed on Deutsche Börse and are backed by Coinbase and Zodia Custody.
Now, you might be wondering, what exactly are ETCs? Well, think of them as a blend between a debt security and an exchange-traded note, but with added layers of protection for investors. These protections include collateral, limited recourse, and a guarantee that the issuer is not affected by bankruptcy. Unlike exchange traded notes (ETNs), ETCs can focus on single assets or smaller, more specific asset baskets.
The increasing worth of Bitcoin and Ethereum has made them too significant to overlook, prompting DWS to offer direct entry to these assets for investors. The goal of the strategic collaboration between DWS and Galaxy is to speed up the adoption of digital assets in Europe. Each ETC benefits from dedicated offline storage solutions offered by Zodia Custody and Coinbase to ensure security.
DWS anticipates that these ETCs will be a budget-friendly choice for investors looking to get into the digital asset market, with a yearly product fee of 0.35%. Galaxy’s extensive knowledge in digital assets will help investors access high-quality digital assets at an institutional level. The partnership between DWS and Galaxy aims to provide investors with a convenient way to trade exchange traded products (ETPs) that are backed by physical assets.
This action boosted demand and trust in BTC among European investors by offering them access equivalent to that of institution. The presence of trusted custodians such as Zodia Custody and Coinbase also provided investors with confidence in the security of coin, thereby leading to the surge of Bitcoin price.
2. Surge in Accumulation Addresses’ Long-Term Investments
The rise in Bitcoin price can be credited to the large amounts of the cryptocurrency being transferred into accumulation wallets. These addresses are owned by Bitcoin holders who have continuously purchased more tokens without engaging in any selling activities. These investors are commonly known as “HODLers.”
21,400 $BTC, worth around $1.40 billion, were moved to accumulation addresses! pic.twitter.com/oYhMj481g8
— Ali (@ali_charts) April 4, 2024
Investors are showing strong confidence in Bitcoin’s long-term value by depositing it into these storage accounts. As more Bitcoin is accumulated by these addresses, the supply in the market decreases, causing an increase in demand and price.
Recent data indicates that the amount of Bitcoin entering accumulation addresses has been unusually high this month, reaching levels similar to past record highs. This important purchasing behavior by investors who hold onto their assets for a long time is viewed as a good indicator of the digital currency, which probably played a role in its recent price increase.
Conclusion
In the dynamic cryptocurrency market, the current Bitcoin price volatility is a natural step in its development towards becoming more established. Even with the necessary changes, Bitcoin still shows resilience and appeal to investors. The increase in price today is a result of both strategic partnerships and investor sentiment, highlighting the changing nature of digital assets.
