Bitcoin Price Surges Past $70,000, Fueled by ETF Inflows

This week, Bitcoin's (BTC) price in Japan has continued its upward trend, reaching around 10.6 million yen ($70,000). Influenced by the soaring Coinbase stock price, BTC surpassed 10 million yen over the weekend. However, the rise stalled near $71,000 due to a lawsuit between the SEC and Coinbase. BTC's decline was limited by a surge in U.S. stocks and the inflow of funds into BlackRock's IBIT. Despite net inflows into U.S. physical Bitcoin ETFs, the market remains cautious ahead of the February U.S. PCE price index announcement, which could determine the near-term direction of BTC.

Bitcoin Price Soars to $70,000 Mark, Boosted by US Spot ETF Inflows

The Bitcoin market has witnessed a surge in prices this week, with the leading cryptocurrency hovering around the $70,000 level, equivalent to approximately 10.6 million yen. This bullish momentum has been driven by a combination of factors, including positive developments in the United States spot exchange-traded funds (ETFs) and the broader financial market.

On-Chain Data Sheds Light on Market Sentiment

On-chain data provides valuable insights into the underlying dynamics of the Bitcoin network. The number of BTC transactions and active addresses has remained relatively stable over the past week, indicating a steady level of network activity. Furthermore, the flow of funds into US spot Bitcoin ETFs has turned positive, signaling a renewed interest in digital assets among institutional investors.

Bitbank Analyst Deciphers Market Outlook

Bitbank analyst Tomoya Hasegawa offers his expert insights into the Bitcoin market outlook:

"The Bitcoin price has maintained its upward trajectory this week, reaching the $70,000 milestone. The resurgence of inflows into US spot Bitcoin ETFs has played a significant role in this momentum. However, the market remains cautious ahead of the release of the February US personal consumption expenditure (PCE) price index, which is likely to impact the near-term direction of the market."

US PCE Price Index Looms Large

The release of the US PCE price index on March 29th is a highly anticipated event that could shape the market sentiment. The index is a measure of inflation, and a stronger-than-expected reading could raise concerns about the Federal Reserve's potential tightening of monetary policy. This could lead to a pullback in risk assets, including Bitcoin.

CME Futures Window Suggests Potential Pullback

The Chicago Mercantile Exchange (CME) futures market provides insights into market expectations for future price movements. The window that opened at the beginning of this week has not yet been filled, indicating a potential for the Bitcoin price to retreat. If the PCE price index exceeds expectations, this could accelerate the downward move.

All-Time High Within Reach

However, a softer-than-expected PCE reading could boost the Bitcoin price and open up the possibility of testing the all-time high of $74,000. The market's direction in the coming week will be heavily influenced by the outcome of this key economic data release.

Contributor Profile: Tomoya Hasegawa

Tomoya Hasegawa, a market analyst at Bitbank Co., Ltd., holds a degree from a British graduate school. He brings a wealth of experience in the FinTech industry and virtual currency market. Hasegawa has provided commentary to leading domestic financial media and contributed to numerous international publications.

Conclusion

The Bitcoin market remains in a delicate balance, poised between the potential for further gains and the risk of a pullback. The release of the US PCE price index on March 29th will be a pivotal event that could determine the direction of the market in the short term. Investors are advised to monitor the situation closely and adjust their strategies accordingly.