Bitcoin (BTC) Price Spikes Above $71K; What Next?

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Bitcoin’s (BTC) price rallied above $71,000 across different cryptocurrency exchanges during the early London session on Monday. After more than two years trapped in a bear market, the flagship cryptocurrency asset is now in the price discovery phase. 

Consequently, Bitcoin has now reclaimed a market capitalization of $1.4 trillion with an average daily trading volume of about $42 billion. Following the sudden Bitcoin spike on Monday, more than $105 million has been liquidated from the Bitcoin leverage market in the past 24 hours.

Unquenchable Demand for Bitcoin 

The approval of a dozen spot Bitcoin exchange-traded funds (ETFs) in the United States earlier this year triggered heavy demand against diminishing supply. Furthermore some of the world’s biggest financial institutions – including BlackRock, Fidelity, Ark Invest, and Invesco among others – have been accumulating more than 10k Bitcoins per day in the past weeks whereas miners are currently producing 900 coins per day.

With Bitcoin’s fourth halving expected in about 40 days, the supply-against-demand shock is expected to escalate further, thus fueling the ongoing bullish outlook.

Remarkably, Bitcoin’s open interest has gradually increased and is almost reaching $35 billion, which means liquidity has significantly increased in the recent past. 

BTC Price Short-Term Price Expectations 

Bitcoin price will continue to rally in the coming weeks after clearing all the major technical hurdles in the recent past. According to a popular crypto analyst Anthony Pompliano, Bitcoin price is likely to reach $138k in the next three weeks if history repeats itself. 

“.. if we go back and look at record high breaks or when we eclipse the old all-time high, three of the four times, Bitcoin price doubled in 18 days or less,” Pompliano noted.