Bitcoin Price Passes $65,000: Here are the Reasons Behind the Rise

Bitcoin, reaching $64,000, which is just 8% away from its all-time high. With a significant difference of $11,404 between the opening and closing prices on Bitstamp, BTC completed its most “green” weekly candle ever.

Increased interest in ETFs such as BlackRock’s iShares Bitcoin Trust (IBIT) also plays a significant role in the price’s recent rise. The fund broke a record by reaching $10 billion in assets under management (AUM) in an unprecedented seven weeks, representing a significant step in institutional adoption of cryptocurrency.

This rapid asset accumulation illustrates a broader trend of increased demand for Bitcoin among institutional investors.

As reported, Anthony Scaramucci predicted that BTC ETFs will grow to control 10% of the Bitcoin supply. predicts.

Impact of Bitcoin Halving

Bitcoin halvingis a critical factor in the cryptocurrency’s valuation model. It usually leads to an increase in price due to the reduced rate of new coin creation and the resulting scarcity effect.

Although the halving has not yet occurred, its expected impact already appears to be influencing market dynamics. This early rally shows that investors are preparing for the expected price increase in advance.

While the rise in Bitcoin’s price is exciting, signs are starting to emerge that the market may be overheated.

One important indicator is the immediate resistance level that Bitcoin is facing. According to a recent warning by 100eyes Crypto Scanner, BTC is facing resistance that could limit its upside.

Another important factor pointing to a potentially overheated market is the record open interest in Bitcoin futures on the Chicago Mercantile Exchange (CME). CoinGlass reported that CME BTC open interest reached an unprecedented $8.66 billion.

The combination of these factors suggests that bullish sentiment around Bitcoin is strong, but investors should remain cautious.

source site-8