Bitcoin saw an incredible month in February, adding over $18,000 to its value in a single month. This outperformance has now carried on into the month of March, which has seen the Bitcoin price cross the $65,000 mark for the first time since 2021. As BTC trades in the green, expectations remain that the performance will continue.

Bitcoin Shows Strong Fundamentals
In a new report shared with NewsBTC via email, the head of research at Matrixport, Markus Thielen, put forward that the Bitcoin price was headed for another all-time high this week. This report highlighted the BTC price performance over the last year, as well as in February, in which the price rose a total of $18,615 in a single month. Additionally, the analyst pointed out that despite the slowdown in Bitcoin Spot ETFs that were seen toward the end of February, it hasn’t affected BTC’s bullishness by much.

Related Reading: $906 Million Worth Of Ethereum Leave Exchanges Last Week – ETH To $4,000?
The crypto analyst explains that institutional buying is not just happening in the United States either. There has also been a large uptick in buying volume across other countries, including the likes of Korea where volumes have reached near $8 billion for five consecutive days. Interestingly, the buying is not just limited to Bitcoin either as there are also inflows into altcoins and meme coins.

Furthermore, the anticipation of Hong Kong launching its own Spot Bitcoin ETF, as well as BlackRock taking the plunge and launching a Bitcoin ETF in Brazil, also proves that there is a lot of demand. So despite the decreased inflows that were seen last week, Thielen explains that if Grayscale’s outflows keep dropping, reaching between $0-$100 million, then he expects further rally for the Bitcoin price.

Thielen also pointed out that the Untied States debt is growing exponentially and Bitcoin now offers better macro upside compared to gold. This plays into the bullish potential of BTC going forth.

“ Previously we have shown that 30-40% of the Bitcoin ETF inflows appear to come out of Gold ETFs and with $80bn of assets-under-management, those re-allocation flows can continue. We have also shown numerous times that Bitcoin has become a better macro asset than Gold as Bitcoin’s reaction function towards changes in interest rate expectations, announcement of wars/conflicts, etc., has become superior (we backtested this).”

BTC Price Headed For New All-Time High
Among the factors driving the Bitcoin price identified by the analyst was a significant decrease in the amount of over-the-counter (OTC) BTC available for large institutions. Spot Bitcoin issuers such as BlackRock tend to utilize these OTC desks for purchases in order to reduce the impact of their buying on the price. However, these OTC sellers have reported that their balances have dropped 80% in the last year from around 10,000 BTC to less than 2,000 BTC.

Related Reading: Crypto Exchange Says Cardano Price Can Reach $165, Here’s When
Thielen also points out that the same trend is seen in exchanges where balances have declined across trading platforms such as Binance and Coinbase. Both of these, which are currently the Bitcoin trading powerhouses of the world, saw a total of 48,000 BTC leave their balances in a month.

Given these developments, the crypto analyst explains that investors are not price-sensitive at this time. So, the expectation for this week is that Bitcoin makes a new all-time high. If this happens, then the market could see BTC tap $70,000 this week.

Bitcoin price chart from Tradingview.com

BTC price surpasses $65,000 | Source: BTCUSD on Tradingview.com
Featured image from Capital.com, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
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Bitcoin Reaches $65,000 Amid Tether’s 1 Billion USDT Mint

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Breaking Bitcoin Reaches $65,000 Amid Tether’s 1 Billion USDT Mint
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By Harsh Notariya
4 March 2024, 08:36 GMT+0000
Updated by
Ryan James
4 March 2024, 08:46 GMT+0000
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In Brief
Bitcoin surpasses $65,000, setting new annual record amid Tether minting 1 billion USDT.
Debate sparked over Tether's impact on Bitcoin's price after Whale Alert reports USDT minting.
Tether CEO clarifies $1 billion USDT for future issuance, amid scrutiny over market dominance.
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Bitcoin Reaches $65,000 Amid Tether’s 1 Billion USDT Mint
Bitcoin soared past the $65,000 mark, reaching a new yearly high. This spike coincides with the Tether Treasury’s creation of 1 billion USDT.

This move has ignited widespread speculation and keen interest across the crypto sector.

Is the Latest USDT Mint Pumping the Crypto Market?
Whale Alert, a blockchain analytics platform, reported the fresh batch of minted USDT on Sunday. Consequently, it sparked a debate about its potential effects on Bitcoin’s price. Historically, there’s been a link between Tether’s minting actions and significant increases in Bitcoin’s value.

BTC/USDT Price ChartBTC/USDT Price Chart. Source: Tradingview
In January, Tether released 2 billion USDT over ten days, coinciding with a notable rise in Bitcoin’s price. This was also driven by spot Bitcoin exchange-traded fund (ETF) anticipations. This trend has led some to speculate about future Bitcoin price volatility.

“$1,000,000,000 USDT got minted. Which coin are they planning to pump?” Crypto investor Elja wrote.

Amid the market’s speculation, Paolo Ardoino, Tether’s CEO, provided some clarity. He explained that the $1 billion USDT is earmarked for future issuance requests and chain swaps, not for immediate market impact.

Read more: A Guide to the Best Stablecoins in 2024

“1 billion USDT inventory replenished on the Ethereum Network. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period’s issuance requests and chain swaps,” Ardoino wrote.

Ardoino’s clarification highlights the operational intricacies of blockchain technology. It shows how digital assets can move across multiple blockchains to meet market demands and enhance liquidity.

Tether is on the brink of reaching a $100 billion market cap. Its dominance in the stablecoin market is clear, with over 70% market share, according to DefiLlama.

Tether (USDT) Market Dominance. Source: DefiLlamaTether (USDT) Market Dominance. Source: DefiLlama
Nonetheless, Tether’s position has faced scrutiny. Last month, JPMorgan Chase & Co. expressed concerns over Tether’s growing market share.

Read more: 8 Best Crypto Wallets to Store Tether (USDT)

They cited issues with regulatory compliance and transparency. The critique from JPMorgan underscores the ongoing discussions about the role of stablecoins in the financial ecosystem.

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Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
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