Where will Bitcoin’s new growth momentum end?

Market conditions

The crypto market continues its impressive growth, growing by over 3.5% in 24 hours %, reaching US$1.87 trillion. After breaking through the January peak, the market is now at its highest level since April 2022. With Bitcoin confidently gaining momentum even before its halving, and with a Fed rate cut still some time away, the cryptocurrency is confusing not only the pessimists but also the expectations of the cautious . This is a breeding ground for FOMO.

Bitcoin has surpassed the $502,000 mark, surpassing an important psychological hurdle and the January high set when the spot ETF was launched. In the medium term, be ready to move out of the $46-$52,000 range, marking the beginning of an aggressive rebound.

Long-term, we are officially seeing the beginning of a Fibonacci pattern, with the target looking to be the $637,000 area. This is close to all-time highs and is unlikely to be the end of the global rally, although sharp swings are expected.

News background

According to data from CoinShares, investment in cryptocurrency funds increased significantly last week 1.116 billion US dollars, after an inflow of US$708 million in the previous week. Bitcoin investments increased by $1.089 billion, Ethereum by $17 million, Cardano by $6 million, and Solana by just $100,000.

To date, crypto funds have seen total inflows of $2.7 billion and total assets under management of $59 billion, the highest levels since early 2022.

According to investment firm Mechanism Capital, Bitcoin’s potential annual cash flow could reach at least $52 billion. Meanwhile, BlackRock and Fidelity estimate that inflows could reach $150 billion to $200 billion over the next three years.

Investment firm Valkуrie Funds expects the number of active spot Bitcoin ETFs to drop to seven to eight by the end of the year due to high stock management costs and competition. Brings low profits.

Glassnode said that several on-chain indicators have entered the so-called "risk zone", which may indicate the beginning of a bull market. Stronger net inflows into Bitcoin spot ETFs supported the market's rebound.

According to Grayscale, fundamental changes in the balance of supply and demand, among other factors, may have a positive impact on the price of Bitcoin after the halving.

Fewer large companies believe in the potential of blockchain, and that number will drop to 7%.