- The historic hike caused a 3.87% spike in Open Interest (OI)
- BTC’s demand was approximately five times greater than supply at press time
The world’s largest cryptocurrency, Bitcoin [BTC] shattered the $70K-level in style, days after bettering its previous all-time high (ATH). In fact, at the time of writing, it had climbed to a new ATH, with BTC trading at $70,973.
Bitcoin hit its latest ATH on the back of a 2% hike over 24 hours and an appreciation of 12% over a 7-day period.
The ascent continues
The king coin rose by 1.40% in the last 24 hours of trading, according to CoinMarketCap. The sought-after digital asset has risen 65% since the beginning of 2024 and looked primed to make further gains to the north.
The historic climb spurred a 3.87% increase in Open Interest (OI) in Bitcoin futures, causing it to rise above $34 billion at press time.
Source: Coinglass
Demand>>>Supply
Bitcoin’s ascent comes on the back of soaring demand from the recently launched spot ETFs in the U.S.
Nearly $223 million worth of Bitcoins was purchased by issuers on the 8th of March.
With this, the cumulative net inflows since the listing day rose to a whopping $9.59 billion, according to data sourced by AMBCrypto from SoSo Value.
As of this writing, Bitcoins worth $55.5 billion were backing these spot ETFs, accounting for more than 4% of Bitcoin’s total supply.
Source: SoSo Value
On the other hand, the network on average was producing Bitcoins at the rate of just $45 million per day, AMBCrypto noticed using Santiment’s data.
This meant that demand was approximately five times greater than the supply.
Source: Glassnode
Emissions from blocks are expected to fall further during next month’s halving. With demand being strong, one could expect Bitcoin’s northward surge to continue.
Read Bitcoin’s [BTC] Price Prediction 2024-25
Seasoned investors holding on
Meanwhile, Bitcoin’s exchange supply continued to plummet. Just over 4% of its total supply was available for trading at press time, as per AMBCrypto’s analysis of Santiment data.
This was happening despite a 100% network profitability. The underlying takeaway was that long-term holders (LTH) were not looking for profits just yet, but rather using Bitcoin as a store of value.
Source: Santiment