Bitcoin made a significant jump at the start of the final week of March, reclaiming the $70,000 mark. The surge in price was notable, with the leading cryptocurrency climbing by approximately 7% to reach $70,617.68. Alongside Bitcoin, Ether also experienced a 7% increase, reaching $3,621.30. This upward trend was not limited to just the top cryptocurrencies, as several other digital assets followed suit with price hikes. Companies connected to the cryptocurrency industry saw gains as well, such as MicroStrategy, Coinbase, Marathon Digital, Riot Platforms, CleanSpark, and Cipher Mining.
Despite the recent surge, Bitcoin had been undergoing a correction phase in the past week after hitting an all-time high of $73,797.68 on March 14. By last Wednesday, Bitcoin had dropped to approximately $60,800. According to Alex Thorn, the head of firmwide research at Galaxy Digital, these declines are considered part of the normal course of action during historical bull market corrections. The fluctuation in Bitcoin's price in March has been characterized by reaching new highs and then experiencing healthy pullbacks.
While the exact reason for Bitcoin's recent surge remains unclear, analysts have pointed out various factors that could have contributed to the price increase. Thorn mentioned that the record outflows from the Grayscale Bitcoin Trust (GBTC) in the past two weeks, possibly due to Genesis and Gemini bankruptcy liquidations, might have added to the weakness in spot prices. However, he also noted that several technical indicators pointed to seller exhaustion, which could have influenced the market sentiment. Sam Callahan, the lead analyst at Swan Bitcoin, suggested that the surge might be related to the recent statements from the Federal Reserve. The Fed's indication of potential rate cuts and a slower pace for its quantitative tightening program could have enhanced liquidity conditions, acting as a positive catalyst for asset prices.
Despite the pullbacks observed earlier in the month, Bitcoin is poised to end March on a positive note. With a 12% gain for the month and a remarkable 64% increase for the first quarter of the year, Bitcoin has showcased its resilience and potential for continued growth in the volatile cryptocurrency market. As investors continue to monitor market trends and regulatory developments, the future trajectory of Bitcoin and other digital assets remains subject to ongoing speculation and analysis.