Bitcoin surged past the $73,000 mark, spurred by a historic influx of funds into spot exchange-traded funds (ETFs). The uptick brought a sense of relief for the investors after a minor correction earlier this week, indicating that the market may not retrace below $69,000 anytime soon.
In fact, on-chain momentum analysis points to a promising trajectory for Bitcoin’s impending parabolic bull run.
Favorable Path for Bitcoin’s Bull Run
According to CryptoQuant’s analyst, the UTXO P/L Supply Ratio Momentum, which evaluates the average weekly profit/loss ratio against the yearly average, has observed two substantial spikes in the last decade. Interestingly, the third is currently gaining momentum.
These spikes denote notable shifts in short-to-long-term profit and loss ratios, historically coinciding with periods of market expansion. Such occurrences suggest the onset of mid-bull rally phases, foretelling potentially lucrative opportunities for investors to capitalize on significant profit margins amidst Bitcoin’s ongoing rally.
Reacting to the analysis, CryptoQuant CEO Ki Young Ju tweeted,
“On-chain momentum indicates enough fresh capital inflow to initiate the next Bitcoin parabolic bull run.”
Spot Bitcoin ETFs Breaks Another Record
Amid Bitcoin reaching another peak, recent research also points to a significant increase in investment activity surrounding spot Bitcoin ETFs in the US market.
On March 12th, these funds saw remarkable performance, attracting a total of $1.05 billion in inflows on March 12. Blackrock’s iShares Bitcoin Trust (IBIT) dominated the figures with a record-breaking $849 million inflow, followed by ARK 21Shares Bitcoin ETF (ARKB) with $93 million and VanEck’s HODL with $82.9 million in inflows.
Fidelity’s FBTC spot Bitcoin ETF (FTBC) and Bitwise Bitcoin ETF (BITB) also saw substantial inflows, at $51.6 million and $24.6 million, respectively. Meanwhile, Grayscale’s GBTC noted a decrease in outflows, with only $79 million leaving the fund on March 12.
The ongoing Bitcoin rally is being hailed as notably distinct from previous surges. Bitcoin has undergone three halving events – in 2012, 2016, and 2020 – each followed by a surge to unprecedented highs.
However, breaking from historical trends, Bitcoin has already surpassed its previous peak established in 2021, months before the halving event, which is scheduled for mid-April. The introduction of spot Bitcoin ETFs on US stock exchanges is one of the biggest catalysts.
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