Bitcoin recently achieved a remarkable milestone, reaching a new all-time high (ATH) of $69,300.
This significant achievement comes after a challenging period that began in November 2021, when Bitcoin experienced a downturn, marking the onset of a prolonged crypto winter.
The landscape remained bleak until early 2023, when the cryptocurrency market began to show signs of recovery, with Bitcoin’s price steadily increasing and entering a new phase of price discovery.
The breach of a new ATH is a critical moment for any asset, signaling a shift into uncharted territory without clear resistance or support levels to guide traders.
Chris Dunn, a seasoned crypto investor and Bitcoin educator, shared his insights with Cointelegraph regarding the potential market dynamics in this new phase.
Dunn anticipates a domino effect that could propel Bitcoin’s price to even greater heights.
He explained, “I expect the trend to accelerate through the all-time high break as people buy breakouts, shorts get liquidated, and potential sellers pull their asks off the order books.”
Bitcoin’s ascent has been remarkable, particularly since February 16, when its price began to surge significantly, marked by large “green candles” indicating substantial price increases.
Despite expectations of a pullback, Bitcoin continued to defy predictions, with another substantial price jump on February 27.
This unexpected rise caught many short traders by surprise, leading to significant liquidations.
On February 27 alone, $161 million in BTC shorts were liquidated, with total liquidations reaching $268 million as Bitcoin’s price briefly exceeded $57,000.
The phenomenon of short liquidations and the ensuing short squeeze effect contribute to the rapid price increases and heightened market volatility.
Amid these developments, the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has played a crucial role in attracting investment.
Notably, BlackRock’s iShares Bitcoin Trust surpassed $10 billion in assets under management in just over seven weeks, a milestone that took the first U.S. gold-backed ETF two years to achieve.
Will Clemente, co-founder of Reflexivity Research, remarked on the remarkable inflows into Bitcoin ETFs, highlighting their significant impact compared to gold ETFs.
Chris Dunn emphasized the importance of Bitcoin ETFs in introducing Wall Street and institutional investors to the cryptocurrency market.
The continued influx of capital into these ETFs underscores the growing demand for Bitcoin and its potential to drive prices higher as more investors engage with the market through these financial products.
Read the latest crypto news today
