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Bitcoin

The Bitcoin price has soared past the $71,000 mark. In the past 24 hours alone, the price of Bitcoin surged by 6.5%, climbing from just below $65,500 to reach $71,491. This remarkable rally can be attributed to a combination of factors that have collectively contributed to the upward trajectory of the world’s leading cryptocurrency. Here’s a closer look at the four key reasons behind Bitcoin’s latest price surge. 
<h2 id="1-futures-market-influence">#1 Futures Market Influence</h2> 
The futures market has played a pivotal role in driving Bitcoin’s price upwards. According to <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noopener nofollow">data</a> from Coinglass, the past 24 hours have seen the liquidation of 64,480 traders, with total crypto liquidations amounting to $184 million. Specifically, for Bitcoin, shorts worth $56.9 million and longs worth $16 million were liquidated. 
Byzantine General, a crypto analyst, <a href="https://twitter.com/ByzGeneral/status/1772292916213338411" target="_blank" rel="noopener nofollow">noted</a> the significant increase in open interest, suggesting that leverage has been a major factor propelling Bitcoin’s price higher. He stated, “I can’t help but have the feeling that BTC is trading like someone knows something. A billion $ in open interest got added in the past couple hours. It’s mostly this leverage that pushed us higher I think.” 
Furkan Yildirim, another analyst, <a href="https://twitter.com/FurkanCCTV/status/1772270249175400626" target="_blank" rel="noopener nofollow">cautioned</a> about the sustainability of this rally, pointing out the over $1.7 billion in open interest built up since yesterday as a sign of overleveraged positions. “The whole truth is that over $1.7 billion in open interest has been built up since yesterday. We are increasingly seeing the use of overleveraged positions again,” he remarked, raising questions of the sustainability of the move. #2 Bullish News For Bitcoin 
The rally was further propelled by a series of optimistic news. Notably, the London Stock Exchange (LSE) announced its plan to introduce a market for Bitcoin (BTC) and Ether (ETH) exchange-traded notes (ETNs) by May 28. This decision opens the door to professional investors in Europe and signifies the growing institutional acceptance. 
Moreover, the news of Peruvian Nilam Resources <a href="https://bitcoinist.com/bitcoin-peruvian-gold-miner-1-7-billion/" target="_blank" rel="noopener nofollow">expressing intent</a> to purchase 24,800 Bitcoins (worth $1.7 billion) “at a discounted rate relative to current market prices” through an acquisition strategy involving MindWave, a special purpose entity, has injected a dose of exhilaration and skepticism into the market, given Nilam’s microcap OTC stock status. #3 Bitcoin ETFs And Coinbase Premium 
Another critical factor influencing Bitcoin’s price rally was the dynamics surrounding Bitcoin ETFs and the <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-coinbase-premium-negative-price-recovery/" target="_blank" rel="noopener ">Coinbase premium</a>. The Coinbase Premium Gap turned positive again yesterday, as observed by CryptoQuant analyst Maartunn, indicating a robust demand for spot Bitcoin ETFs. 
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"> 
 Guess who's back? Bitcoin: Coinbase Premium Gap is positive again <a href="https://t.co/0C7YyyFe2T" rel="nofollow">https://t.co/0C7YyyFe2T</a> <a href="https://t.co/b73XbSygbl" rel="nofollow">pic.twitter.com/b73XbSygbl</a> 
 — Maartunn (@JA_Maartun) <a href="https://twitter.com/JA_Maartun/status/1772310510182060270?ref_src=twsrc%5Etfw" rel="nofollow">March 25, 2024</a>
</blockquote> 
Given Coinbase’s <a href="https://www.newsbtc.com/coinbase/coinbase-custody-accounts-for-90-of-all-bitcoin-etfs-details/" target="_blank" rel="noopener ">custodianship of approximately 90%</a> of Bitcoin ETF assets, the premium emerges as a pivotal indicator of institutional demand for Bitcoin. This was further evidenced by the positive ETF net inflows yesterday, amounting to $15.4 million after last week saw five consecutive days of net outflows. 
<a href="https://www.newsbtc.com/news/bitcoin/bitcoin-spot-etf-grayscale-outflows/" target="_blank" rel="noopener ">Grayscale’s GBTC</a> had $350 million in outflows. Meanwhile, Fidelity’s FBTC started picking up last week’s slack with $261.8 million in inflows. Blackrock had another weak day with only $35 million in inflows. Nonetheless, the Coinbase premium was once again a good indicator. 
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"> 
 Yesterday's ETF flows were positive once again after a negative week for $15.4 million.<a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="nofollow">$GBTC</a> had $350 million in outflows. Fidelity started picking up last week's slack with $261.8 million in inflows.Blackrock only did $35 million. 
 Price moved from $65k to above $70k. A day… <a href="https://t.co/HCNwa7L2p8" rel="nofollow">pic.twitter.com/HCNwa7L2p8</a> 
 — WhalePanda (@WhalePanda) <a href="https://twitter.com/WhalePanda/status/1772471145758970170?ref_src=twsrc%5Etfw" rel="nofollow">March 26, 2024</a>
</blockquote> #4 Technical Breakout 
From a technical perspective, Bitcoin’s price breakout from a descending parallel trend channel on the 4-hour chart marked a crucial turning point. The successful retest of the strong resistance zone (red zone) has confirmed the breakout’s legitimacy, leading to a more than 7% increase in Bitcoin’s price. This technical movement has bolstered the confidence of traders and investors alike, contributing to the momentum that has driven the price past the $70,000 threshold. 
<img loading="lazy" decoding="async" class="wp-image-599689 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-26_08-50-02.png?resize=3628%2C1673" alt="Bitcoin price" width="3628" height="1673" srcset="https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-26_08-50-02.png?resize=3628%2C1673?w=3628 3628w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-26_08-50-02.png?resize=3628%2C1673?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-26_08-50-02.png?resize=3628%2C1673?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-26_08-50-02.png?resize=3628%2C1673?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-26_08-50-02.png?resize=3628%2C1673?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-26_08-50-02.png?resize=3628%2C1673?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-26_08-50-02.png?resize=3628%2C1673?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-26_08-50-02.png?resize=3628%2C1673?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/03/BTCUSD_2024-03-26_08-50-02.png?resize=3628%2C1673?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1">

Bitcoin Price Surges Past $71,000: 4 Key Reasons Behind The Rally

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