Skip to main content

Bitcoin hit a new all-time high: What's next for the crypto market?

06 Mar, 2024

Bitcoin (BTC) hit a new all-time high on 5 March, surpassing $69,200 for the first time in its history. Interestingly, gold also achieved an unprecedented price milestone on the same day, marking the first instance of simultaneous record-breaking highs since Bitcoin's inception and signifying an intriguing market trend toward these very different assets.

Bitcoin vs gold: reasons behind the rally

Spot gold soared to $2,130 on 5 March, exceeding its previous highs of around $2,000 set in early December. In a remarkable turn of events, Bitcoin mirrored this feat, hitting a new all-time high of $69,210, marking its first significant surge since reaching $69,000 on 9 November 2021.

This simultaneous breakthrough in both Bitcoin and gold prices represents a historic moment, underscoring their status as potential hedges against fiat currencies and inflation. Analysts suggest that the rally in both assets may be driven by expectations of lower interest rates in the future, aimed at managing sovereign debt levels amidst various global economic factors.

The reasons for Bitcoin's ongoing rally are no secret. Hype is building in the lead-up to the upcoming quadrennial halving event, when mining rewards will be halving, significantly reducing the supply of Bitcoin relative to demand. At the same time, funds are flowing from institutional investors into the newly approved spot BTC exchange-traded funds (ETFs) in the United States. These ETFs allow for significant investment into cryptocurrency with less exposure to holding the actual assets, making it safer for traditional financial organisations and more tempting in the face of a weaker dollar.

Gold, on the other hand, is seen as a safe-haven asset in risky times and tends to do well at times of economic and political instability. In our current period of traders' persistent inflation, record debt levels, and geopolitical tensions, it's no surprise, then, that traders are looking for alternatives to fiat currencies.

So, which is the better hedge in risky financial times? A digital coin or shiny metal? Even if you had just entered the crypto world in 2024, it looks like BTC wins out; Bitcoin has surged 52% year-to-date, while spot gold has seen a more modest 2% increase since the beginning of January.

Flash crash and consolidation

Bitcoin's new all-time high was short-lived as a flash crash swiftly brought it back below $60,000. The sudden downturn was fueled by profit-taking from long-term BTC holders, including dormant accounts and prominent whales reawakening to cash in on their gains.

During this period, crypto exchanges observed a notable influx of Bitcoin, totalling $525 million over three days, as traders transferred their holdings from cold wallets to exchanges to capitalise on the anticipated peak. One notable occurrence was a dormant whale resurfacing after 14 years to sell 1,000 BTC at its all-time high (equivalent to $67.1 million). Given that this particular whale acquired these Bitcoins in 2010 when prices were mere fractions of a cent, this seller racked up an enormous profit of over $60 million with this timely move.

While hodlers seized the opportunity to cash out, leveraged traders faced significant losses, with over $1 billion in leveraged positions liquidated due to the market's extreme volatility, marking the largest liquidation event since the previous market cycle's peak. Despite the sell-off, many long-term hodlers were able to rake in high profits as BTC hit $69,000. After the carnage of the profit-taking flash crash, Bitcoin showed its resilience as it swiftly rebounded above $66,000 within 24 hours, a mere 4% shy of its recent all-time high. 

HODL vs FOMO: What's the next move for BTC traders?

Whales may have sold off a chunk to take profit, but that isn't representative of a wider sell-off. Despite the turbulence, a significant portion of Bitcoin remains untouched, with 45% of the supply dormant for over three years and 11% untouched for five to seven years, reflecting the steadfast conviction of many hodlers in the top digital asset's long-term potential. While some BTC owners may have panicked and sold due to fear of missing out, many cooler heads are still holding on to the Bitcoin and even accumulating more, anticipating even higher numbers after the halving.

Analysts are also comparing the current moment to Bitcoin's price movement in late 2020 when it surpassed previous all-time highs. During that period, BTC/USD similarly experienced a sudden retracement, lingering below the new highs for approximately two weeks before ultimately breaking out again.

Make the most of the BTC bull market with StormGain

StormGain offers an all-in-one platform tailored for both novice traders and crypto veterans who are looking to leverage potential price swings in Bitcoin, Ethereum (ETH), and various other digital assets. With increased institutional backing, heightened interest in spot ETFs, and anticipation surrounding the impending halving event, the outlook is sunny for Bitcoin and the wider cryptocurrency market, and traders should position themselves to take advantage.

Accessible through the web or a user-friendly smartphone app, StormGain operates as a comprehensive crypto trading and investment hub, ensuring uninterrupted access to top assets across the global cryptocurrency market.

To maximise your profit potential, StormGain provides you with all the tools you need to succeed, including comprehensive trading signals, competitive fees, a diverse array of educational resources, secure crypto wallets, and an integrated Bitcoin cloud miner. This distinctive feature enables users to earn free BTC simply by actively engaging on the platform.

If you're looking to up your cryptocurrency trading game before the halving, StormGain is here to put that power in your hands. Register now and try a demo account to see firsthand how StormGain can help you on your trading journey.

Exchange BTC

Mining icon
Want Bitcoin for free?

Try our Bitcoin Cloud Miner and get additional crypto rewards based on your trading volume. It's immediately available upon registration.

Start mining

Mining icon
Want Bitcoin for free?

Try our Bitcoin Cloud Miner and get additional crypto rewards based on your trading volume. It's immediately available upon registration.

Start mining