Bitcoin Surges Past $97,000: Key Factors Driving Its Rise
bitcoin’s price has climbed this week, crossing $97,000. It’s the highest as February. Here are three reasons why it might hit new highs this year.
First, Bitcoin’s supply on exchanges is shrinking. Only 1.42 million coins are on centralized exchanges, the lowest in six years.This is down from 3.21 million in 2018. More coins are being held outside exchanges,at 18.43 million. this suggests investors are holding onto their Bitcoin, which could lead to a supply squeeze as demand grows.
Major holders like Michael Saylor’s Strategy,which owns over 2% of Bitcoin,are still buying. Companies like Coinbase, Tesla, adn Block show no signs of selling.
Second,demand is soaring. Retail and institutional investors are increasingly interested in Bitcoin.Bitcoin ETF inflows are a key indicator. Sence January last year, these funds have added over $40 billion in assets. Blackrock’s IBIT alone has $60 billion. Rising ETF inflows signal strong institutional demand in the U.S. and globally.
Analysts are optimistic. Standard Chartered sees Bitcoin reaching $200,000. Ark Invest predicts $2.4 million by 2030. Easing trade tensions could also boost demand.
Lastly, Bitcoin’s technicals are strong. It’s above the ascending trendline and key resistance levels. If this momentum continues, it could surpass $100,000 and reach new all-time highs.
