๐ Bitcoin prices are soaring towards all-time highs (ATH) once again, even before the anticipated halving event in April! ๐ This rally is the most powerful since the 2021 bull market, with weekly, monthly, and quarterly performances hitting +20%, +44%, and +55% respectively.
The SEC's approval of Spot ETFs for US markets has led to strong demand, with Bitcoin trading at $68.0k, 58% higher than $42.8k at the time of ETF approvals. ๐ The market has seen a net capital inflow into Bitcoin of around $267M/day, driving the rebound towards new ATHs.
Coinbase has experienced a significant increase in average transaction size, peaking at 4.3 BTC/Tx at the time of the ETF approval, indicating the scale of new institutional capital entering Bitcoin. ๐ฆ
Long-term holders are sitting on an unrealized profit of ~228% with the current price at $68k. As the market approaches ATHs, their distribution pressure is increasing, a trend seen in all prior cycles. However, the new US Spot ETFs have introduced a significant new source of demand, offsetting the distribution pressure from existing holders and explaining Bitcoin's meteoric rise back to all-time highs. ๐