- The historic increase caused a 3.87% spike in Open Interest (OI)
- BTC demand was approximately five times greater than supply at the time of writing
The largest cryptocurrency in the world, Bitcoin [BTC] shattered the $70K level in style, days after beating its previous all-time high (ATH). At the time of writing, it had even risen to a new ATH, with BTC trading at $70,973.
Bitcoin reached its latest ATH after rising 2% in 24 hours and appreciating 12% over 7 days.
Source: BTC/USDTrading view
The ascent continues
According to this report, the king coin has risen by 1.40% in the last 24 trading hours CoinMarketCap. The sought-after digital asset has risen 65% since the start of 2024 and looked poised to make further gains in the north.
The historic climb saw a 3.87% increase in Open Interest (OI) in Bitcoin futures, pushing it above $34 billion at the time of writing.
Source: Coinglass
Demand >>> Offer
Bitcoin’s rise comes thanks to rising demand from the recently launched spot ETFs in the US
On March 8, nearly $223 million worth of Bitcoins were purchased by issuers.
This increased cumulative net inflows since listing day to a whopping $9.59 billion, according to data sourced from AMBCrypto of SoSo value.
At the time of writing, $55.5 billion worth of Bitcoins backed these spot ETFs, accounting for more than 4% of Bitcoin’s total supply.
Source: SoSo value
On the other hand, the network produced an average of just $45 million Bitcoins per day, AMBCrypto noted using Santiment’s data.
This meant that demand was approximately five times greater than supply.
Source: Glassnode
It is expected that emissions from blocks will fall further in the coming month halve. With demand strong, you might expect Bitcoin’s northward rise to continue.
Read Bitcoin’s [BTC] Price forecast 2024-25
Seasoned investors are holding their ground
Meanwhile, Bitcoin supply continued to decline. Just over 4% of the total supply was available for trading at the time of writing, according to AMBCrypto’s analysis of Santiment data.
This happened despite 100% network profitability. The underlying conclusion was that long-term holders (LTH) were not yet looking for profits, but rather using Bitcoin as a store of value.
Source: Santiment