Bitcoin’s Parabolic Rally Foreseen by This Metric, How High Can BTC Go?

Bitcoin surged past the $73,000 mark, spurred by a historic influx of funds into spot exchange-traded funds (ETFs). The uptick brought a sense of relief for the investors after a minor correction earlier this week, indicating that the market may not retrace below $69,000 anytime soon.

In fact, on-chain momentum analysis points to a promising trajectory for Bitcoin’s impending parabolic bull run.

Favorable Path for Bitcoin’s Bull Run

According to CryptoQuant’s analyst, the UTXO P/L Supply Ratio Momentum, which evaluates the average weekly profit/loss ratio against the yearly average, has observed two substantial spikes in the last decade. Interestingly, the third is currently gaining momentum.

These spikes denote notable shifts in short-to-long-term profit and loss ratios, historically coinciding with periods of market expansion. Such occurrences suggest the onset of mid-bull rally phases, foretelling potentially lucrative opportunities for investors to capitalize on significant profit margins amidst Bitcoin’s ongoing rally.

Reacting to the analysis, CryptoQuant CEO Ki Young Ju tweeted,

“On-chain momentum indicates enough fresh capital inflow to initiate the next Bitcoin parabolic bull run.”

Bitcoin UTXO P/L. Source: CryptoQuant

Spot Bitcoin ETFs Breaks Another Record

Amid Bitcoin reaching another peak, recent research also points to a significant increase in investment activity surrounding spot Bitcoin ETFs in the US market.

On March 12th, these funds saw remarkable performance, attracting a total of $1.05 billion in inflows on March 12.  Blackrock’s iShares Bitcoin Trust (IBIT) dominated the figures with a record-breaking $849 million inflow, followed by ARK 21Shares Bitcoin ETF (ARKB) with $93 million and VanEck’s HODL with $82.9 million in inflows.

Fidelity’s FBTC spot Bitcoin ETF (FTBC) and Bitwise Bitcoin ETF (BITB) also saw substantial inflows, at $51.6 million and $24.6 million, respectively. Meanwhile, Grayscale’s GBTC noted a decrease in outflows, with only $79 million leaving the fund on March 12.

The ongoing Bitcoin rally is being hailed as notably distinct from previous surges. Bitcoin has undergone three halving events – in 2012, 2016, and 2020 – each followed by a surge to unprecedented highs.

However, breaking from historical trends, Bitcoin has already surpassed its previous peak established in 2021, months before the halving event, which is scheduled for mid-April. The introduction of spot Bitcoin ETFs on US stock exchanges is one of the biggest catalysts.

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