Bitcoin’s sudden surge: what’s the next target price?

Author: Qin Jin, Carbon Chain Value

Bitcoin continues to skyrocket.

On February 26, Bitcoin broke through the $54,000 mark. A one-day increase of 5%. It hit a maximum of $54,965.26, reaching its highest level since December 2021.

Affected by this, cryptocurrency-related stocks also rose sharply. Coinbase and Microstrategy rose more than 16%. Riot Platforms and Marathon Digital surged 15% and 20% respectively.

In the opinion of industry analysts, this surge is mainly due to three reasons: First, the 26th is the settlement day of Bitcoin futures, which will help to see a surge in prices. Next is the Bitcoin halving. Finally, there is the inflow of Bitcoin ETF funds.

Bitwise Asset Management analysts said that the 26th is the settlement day of Bitcoin futures, which contributes to the price jump seen. He said that we are about to enter the window period when traders usually make arrangements before Bitcoin’s halving. He speculated that this would be the day people would start buying bullish positions ahead of the halving.

Mark Bernager, co-founder of cryptocurrency fund AltAlpha Digital, said that Bitcoin will be halved in the next 51 days. The recently launched Bitcoin ETF continues to see capital inflows. Two very strong tailwinds have come together like never before.

According to Forbes, the market observer made this view shortly before the cryptocurrency approached $54,500, based on Coinbase data reported by TradingView. Additional Coinbase data provided by TradingView shows that at this time, the digital asset’s trading value reached its highest value in 27 months. Bernager added that I see very positive momentum and I would not be surprised if Bitcoin breaks through the $60,000 level sooner or later.

In addition, William Noble, director of research and content development at Emerging Assets Group, said that Bitcoin may rise to $58,000 or $60,000 before any substantial correction in March. . He emphasized that the Fed's Bank Term Funding Program, designed to provide additional liquidity to lenders, is scheduled to end on March 11.

According to CNBC, JPMorgan Chase pointed out in a recent report that after a pause in January, demand for cryptocurrencies from retailers rebounded in February and became an important driving force for price increases. JPMorgan noted that three key catalysts help explain the resurgence of retailer interest: The first is the Bitcoin halving coupled with the Ethereum Cancun upgrade, both of which JPMorgan believes are priced in. Second is the possible approval of a spot Ethereum ETF.

Bitcoin targets $58,000

According to "coindesk", although some market observers expect that Bitcoin may correct to $58,000 without stalling $48,000, but Monday’s rally was a decisive break above the last significant resistance level in history.

BTC now appears to have finally broken out of the range it has held since February 15, cryptocurrency analytics firm Swissblock said in a Telegram market update on Monday. Momentum is rising strongly. All sails have sailed.

Swissblock analysts added that Bitcoin’s next target is the $57,000-58,000 range, after which it is expected to hit a record high. Meanwhile, Bitcoin’s premium on Coinbase has also increased compared to other exchanges, suggesting demand is coming from U.S. investors.

According to TradingView data, the trading volume of spot Bitcoin ETFs listed in the United States is very large, and BlackRock IBIT has achieved the largest single-day trading volume since its listing. However, according to a report from NYDIG, ETF trading volume does not always translate into fund inflows.