As volatility has subsided, the price of Bitcoin (BTC) has broken above $70,000 once again. What can we say about the current market situation?
Bitcoin (BTC) Price Reclaims $70,000
This morning, the price of Bitcoin (BTC) once again reached $70,000, trading at nearly $70,800 at the time of this writing, up 4.6% over the past 24 hours.
Overall, the entire crypto market appears to be enjoying a breather, with total market capitalization up 3.2% to $2,480.4 billion.
Since the end of the major downtrend between late January and early February, the price of BTC appears to have entered a period of consolidation, seeking direction within a range between $60,000 and $74,000. This is reminiscent of the previous range between $80,000 and $95,000, which ultimately broke downward after two months.
For now, no news from within the crypto ecosystem is triggering movement in either direction, while the geopolitical and macroeconomic situation is not introducing any new variables into the equation.
Consequently, we might wonder if the low point is already behind us—specifically, $60,132, if that is the case. In practical terms, it’s impossible to determine this, but it’s worth noting that if this were the case, we would likely be facing the shortest bear market in Bitcoin’s history. And for good reason: we would have seen a 52% decline over just 5 months, whereas in the past, a 77% correction over 12 months was the minimum:
BTC price (monthly data)
Of course, we are not immune to an unprecedented situation, and past events have already shown us that this is possible. For example, the previous bull run saw a new all-time high (ATH) before the halving for the first time, while during the previous bear market, the price of BTC fell below the ATH of the previous bull run—which was also unprecedented. However, we still emphasize that historical statistics do not suggest that a low has already been reached, even though nothing is impossible.
To reach new records, a strong return of liquidity will be necessary, and for now, liquidity remains scarce.
As a result, realized market capitalization is currently declining. Since this is calculated based on the price of each BTC at the time of its last transaction, this suggests that there are still more outflows than inflows:
Realized BTC Market Capitalization
As for U.S. spot Bitcoin ETFs, they currently have $88.34 billion in assets under management, with a cumulative net outflow of $5.65 billion since last October.
