Bitcoin made a significant spike to kick off the final week of March, surging past the $70,000 mark. The leading cryptocurrency climbed by 7% to reach $70,617.68, as reported by Coin Metrics. Joining the rally, Ether also saw a 5% jump to $3,575.01. The positive movement in Bitcoin’s price influenced a rise in various other cryptocurrencies as well. MicroStrategy, known for trading as a proxy for the price of Bitcoin, soared by 17%, while Coinbase advanced by 9%. In the mining sector, Marathon Digital and Riot Platforms also experienced gains of 2% and 6%, respectively. Furthermore, CleanSpark saw a 16% increase, and Cipher Mining gained 12%.
Bitcoin had been going through a correction phase in the past week, following its all-time high of $73,797.68 on March 14th. Last Wednesday, it dropped to around $60,800. Alex Thorn, head of firmwide research at Galaxy Digital, noted that such declines are not uncommon during historical bull markets. The recent surge in Bitcoin’s price on Monday was a sharp turnaround, but the exact reason remains unclear. Throughout March, Bitcoin has displayed a pattern of setting new highs followed by healthy pullbacks. Thorn speculated that investors might have paused from selling shares of Bitcoin exchange-traded funds, leading to increased price stability. He also mentioned technical indicators pointing to exhaustion among sellers. On the other hand, Sam Callahan, lead analyst at Swan Bitcoin, linked the price surge to the Federal Reserve’s recent messaging. The Fed’s considerations of rate cuts and reducing quantitative tightening programs serve as positive catalysts for asset prices. Bitcoin, being a measure of liquidity conditions, responded positively to the Fed’s signals of potential easing in monetary policy.
Despite occasional pullbacks, Bitcoin is on course to end March on a positive note. The cryptocurrency has recorded a 12% gain for the month and an impressive 64% increase so far in the first quarter. This upward trajectory suggests a promising outlook for Bitcoin’s performance in the coming months.
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