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In a sign that the bull market has truly begun, the price of BTC has reached a new all-time high today (March 5).
After climbing on Sunday and Monday, the coin reached a high of $69,045 before dumping hard. At the time of this writing, the price is around $67,130.
The role of psychology and memes is powerful in markets—and the number 69 holds talismanic significance in crypto culture.
Although the Bitcoin rally has been fuelled by buy pressure from weeks of positive net inflows from BTC spot ETFs, the price may encounter resistance at this level.
Vetle Lunde, senior analyst at K33 research, called conditions “frothy” this morning. “Funding rates are at three-year highs, while notional OI is up 23,000 BTC over the past six days.
Fairly certain that we’ll see ATHs relatively soon, but also fairly certain that we’ll see downside vol and cascading long liquidations ahead of ATH,” he posted on X on the morning of March 5.
Open interest refers to the total number of outstanding futures and options contracts in the market and is a good indicator of demand for the token.
While there has been a period of sustained net inflows info the Bitcoin ETFs, these are often outpaced by outflows from Grayscale’s higher-fee ETF product, with these coming in at a total of nearly $500 million on Friday.
The approaching Bitcoin halving, expected in April, offers uncertainty as well. While the increasing difficulty in mining Bitcoin can increase scarcity, it could also dissuade miners and pose a barrier to increased investment in the token.
Ethereum has also been enjoying a rally, with a price of $3771 as of this writing.
The BTC ATH comes after a dramatic day of high ticket sales in the NFT space, including an EtherRock for 209 ETH and a CryptoPunk Alien for 4500 ETH on March 4.