Xcoins™ Official

March 11, 2024

Bitcoin Secures $70,000 as Institutions Accumulate

March 11, 2024

Bitcoin has crossed the $70,000 milestone for the first time in its existence as investor appetite continues to be fueled by institutional adoption and the oncoming halving.

Concurrently, market sentiment has reached a three-year peak of “extreme greed,” propelled by Bitcoin’s price spikes and heightened activity in derivatives markets.

Amidst this backdrop, speculation surrounding Tesla’s potential reengagement with Bitcoin gains traction, with murmurs of increased holdings sparking intrigue. 

Meanwhile, Bitcoin whales, undeterred by record highs, demonstrate steadfast accumulation.

With a lot of fundamental drivers to break down from last week, let’s dive in.

Bitcoin breaches $70,000 for the first time

Bitcoin surged to an all-time high on Friday, breaching the elusive $70,000 mark for the first time in its history. 

BTC/USD price chart

The momentum behind this surge continues to be fueled by a fervent demand from investors for new US spot exchange-traded cryptocurrency products, coupled with anticipation of a global downturn in interest rates.

This surge has been further buoyed by optimistic projections, including an impending upgrade to the Ethereum blockchain platform and the upcoming Bitcoin “halving” event scheduled for April, which is set to decelerate the pace of Bitcoin mining.

Following its first record-breaking high of the week on Tuesday, Bitcoin experienced a sharp reversal, plummeting more than 10% to dip below the $60,000 mark once again.

However, the world’s leading crypto recovered by an impressive 15% to once again post record highs 3 days later.

Furthermore, institutional investors, who once hesitated to engage with cryptocurrencies due to their erratic fluctuations, have increasingly committed long-term investments. 

According to Ecoinometrics, the institutionalization of Bitcoin continues to gather momentum, with institutions already holding a substantial portion of the total Bitcoin supply. 

Estimates suggest that approximately 11% of Bitcoin’s maximum supply is now held by institutions, with ETFs now accounting for a significant portion of this ownership at 4.5%.

Chart displaying the percentage of Bitcoin held by institutions via Ecoinometrics
Chart displaying the percentage of Bitcoin held by institutions via Ecoinometrics

Fear and greed index reaches 3-year high

Cryptocurrency enthusiasts are witnessing an unprecedented surge in market sentiment as the Fear and Greed index soars to levels not seen in three years. 

Tweet from CoinGecko depicting Bitcoin’s Fear and Greed Index

The index, which gauges investor sentiment towards Bitcoin, has surged to an astounding 90, marking a level of “extreme greed” last experienced in February 2021.

This surge in sentiment comes on the heels of a remarkable momentum in the spot Bitcoin ETF market. 

With Bitcoin’s price hitting all-time highs, investors are displaying a voracious appetite for the leading cryptocurrency, propelling the market into a state of euphoria.

However, despite the overwhelming greed permeating the market, Bitcoin’s price continues to exhibit volatility, keeping traders on their toes. 

Notably, open interest in Bitcoin futures has been on the rise, reflecting heightened activity in derivative markets.

The recent frenzy in Bitcoin futures trading has led to significant liquidations, which was exemplified by last Tuesday’s sharp price movements. 

Within a mere hour of Bitcoin reaching its all-time high on March 5th, long liquidations amounted to a staggering $35 million, catching many market participants off guard.

Bitcoin Fear and Greed Index from 2018 to 2024
Bitcoin Fear and Greed Index from 2018 to 2024

Has Tesla purchased more Bitcoin? Rumors spiral

Cryptocurrency enthusiasts are abuzz with speculation as Tesla’s Bitcoin holdings once again come under scrutiny. 

Recent data from Arkham Intelligence’s cryptocurrency analytics platform reveals an intriguing increase in Tesla’s Bitcoin wallet, sparking speculation about potential new purchases by the electric car manufacturer.

At present, Tesla’s Bitcoin wallet reportedly contains approximately 11,509 BTC, which is a significant jump from the 9,720 BTC reported during the company’s last earnings disclosure. 

Tesla’s BTC holdings according to Arkham
Tesla’s BTC holdings according to Arkham

This notable increase has reignited discussions surrounding Tesla’s stance on the flagship cryptocurrency and its potential reentry into the market.

The saga of Tesla and Bitcoin has been a rollercoaster ride. 

Back in February 2021, amidst great fanfare, Tesla announced its acquisition of $1.5 billion worth of Bitcoin, signaling a major institutional endorsement of the digital asset. 

However, within months, the company sold a portion of its holdings, citing various reasons including volatility concerns and environmental considerations regarding Bitcoin mining. 

Now, with the revelation of an uptick in Tesla’s Bitcoin wallet, speculation is rife once again. Some observers speculate that Tesla may have resumed accumulating Bitcoin, possibly in preparation for a forthcoming earnings call. Others ponder whether the altered figures might be attributed to an accounting anomaly rather than new purchases.

Bitcoin whales refuse to sell

Despite Bitcoin’s recent surge to record highs, the population of major holders, often referred to as whales, continues to expand. 

According to recent data from LookintoBitcoin, there are now 2,104 unique addresses holding at least 1,000 Bitcoin, indicating a steady rise in whale activity in the cryptocurrency market.

Bitcoin address holding over 1000 BTC vs price

While this figure is slightly lower than the peak of 2,489 addresses recorded in February 2021, when Bitcoin was trading above $46,000, the current trend is noteworthy. 

One of the most intriguing aspects of this trend is the reluctance of Bitcoin whales to sell their holdings despite soaring prices. 

This behavior suggests a strong conviction among major holders that Bitcoin’s value will continue to appreciate in the foreseeable future. 

Moreover, data from Glassnode reveals transfers from exchanges to whales have surged to new record highs, indicating a significant influx of Bitcoin into whale wallets. 

However, the volume of transfers from whales to exchanges has seen only a modest increase, suggesting that wealthy investors are not rushing to cash out their holdings despite the current price levels.

Chart displaying the number of Bitcoin transfers from exchanges to whale entities via Glassnode
Chart displaying the number of Bitcoin transfers from exchanges to whale entities via Glassnode

To stay up to date on all things crypto, like Xcoins on Facebook, and follow us on Twitter, Instagram, and LinkedIn.

Subscribe to our newsletter