Bitcoin has achieved unprecedented highs against the Euro and British Pound.
During Monday’s early trade, BTC/EUR surpassed €60,000, briefly reaching €62,000 in US trading hours. Simultaneously, BTC/GBP soared to £53,000, significantly surpassing its previous record of around £51,000 in 2021. In terms of US dollars, Bitcoin surpassed $67,000 and is now within 3% of its November 2021 peak at $69,000.
With just four days into March, Bitcoin has already surged approximately 10%. Following February’s 44% surge and amidst ongoing bullish momentum, it seems inevitable that Bitcoin will reach new record highs in dollar terms this month.
The surge in Bitcoin’s price coincides with a massive exodus of BTC tokens from exchanges. The introduction of new spot Bitcoin ETFs in the US has fueled this surge, with BlackRock’s ETF alone reaching $10 billion in assets under management in seven weeks, making it the fastest-growing ETF in history. Additionally, other firms such as Fidelity and Ark have also launched spot Bitcoin ETFs, further driving demand.
This surge in demand comes at a time when Bitcoin supply is decreasing, as evidenced by the significant drop in BTC tokens held on exchanges. This trend suggests that traders and investors are increasingly opting for self-custody of their coins, which implies lower sell pressure. Furthermore, the impending halving of the Bitcoin issuance rate to miners in April is expected to further reduce sell pressure.
Market psychology suggests that traders will continue to push the Bitcoin price until it reaches new record highs in US dollar terms. While short-term speculators may engage in profit-taking once these highs are reached, bullish fundamentals are likely to attract longer-term buyers, potentially propelling Bitcoin above $70,000 for the first time.
Looking ahead, the next major psychological target for Bitcoin is the $100,000 level. Technical analysis tools, such as Fibonacci extensions, suggest even higher price targets, with levels reaching $102,000, $156,000, and $210,000. While these levels may seem ambitious, if Bitcoin were to surpass gold as the global reserve asset, it could potentially reach a market cap exceeding $14 trillion, implying a Bitcoin price surpassing $666,000 in the long term. While reaching such levels may take time, Bitcoin achieving prices in the hundreds of thousands in 2024/2025 is within the realm of possibility.
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