At the beginning of the week, Bitcoin gains 7% and reclaims $70,000.
Despite its pullbacks, bitcoin is on pace to finish March on a winning note.
In the first week of March last week, Bitcoin surged and took back the $70,000 mark.
According to Coin Metrics, the flagship cryptocurrency’s price increased by 7.8% to $70,995.48, on Friday night. As the stock market closed in late afternoon trade, it surged momentarily to $71,239.31. Ether reached $3,634.80, up 7.4%. The majority of other coins also benefited from the bitcoin boom.
Coinbase gained 9%, while MicroStrategy, a trading platform that mimics the price of bitcoin, increased by 21%. Bitcoin also helped the mining industry, as Riot Platforms increased by 9%, CleanSpark increased by 19%, and Cipher Mining increased by 13%.
Since March 14, when it reached an all-time high of $73,797.68, bitcoin has been in corrective mode. It dropped to as low as around $60,800 on Wednesday. Alex Thorn, head of firmwide research at Galaxy Digital, says these declines are “well outside the norm of previous bull market brief corrections.”
The cause of Monday’s significant surge remained unknown, although the price movement of cryptocurrencies in March has been marked by fresh highs interspersed by sensible declines. According to Thorn, investors were pausing their sales of bitcoin exchange-traded funds.
“Spot prices were weaker due to the record GBTC outflows over the last two weeks, which were probably brought on by Genesis and Gemini’s bankruptcy liquidations, but multiple technical indicators suggested seller exhaustion,” according to Thorn.
Lead analyst Sam Callahan of the bitcoin services company Swan Bitcoin stated that it’s probably related to the statements made by the Federal Reserve last week.
He stated, “Fed officials made it clear last week that they are considering reducing the pace of its quantitative tightening program this year in addition to considering rate cuts.” By improving liquidity circumstances, such measures will favorably stimulate asset values. As a gauge of liquidity circumstances, bitcoin reacted well to the Fed’s announcement that monetary policy will probably loosen soon.
Even with its downswings, bitcoin is expected to close March strongly. It has increased by 66% for the first quarter thus far, and by 14% for the month.
