Bitcoin rebounds over 4% to hit $54K, highest price since 2021

The cycle is just beginning, as evidenced by the new capital flowing into bitcoin. The realized cap of short-term holders is about 35% of the total realized market cap. There are many analyses of why bitcoin has rallied, but the most compelling argument seems to be the halving and ETF capital inflows.

Bitcoin's mining halving occurs every four years, and since the launch of spot ETFs, there has been a strong inflow of cash into ETFs, which means that the total amount of bitcoin mined is (and will be) lower, leading to a spike in the spot price. On Monday the 26th alone, the single category of bitcoin ETFs saw $3.2 billion in daily trading volume, reversing a trend that had been declining since the ETFs hit $4.6 billion on their first day of trading. A 25% increase in the spot price of bitcoin would mark a new all-time high. However, it is expected to be an uphill battle to get past the 55K mark. It is analyzed that the selling price is clustered in the mid-55K range compared to the previous accumulation.