Bitcoin recently reached a record high of $73,650 on March 13, showing a significant 44% increase in just 16 days. This surge is attributed to the growing demand for spot Bitcoin exchange-traded funds (ETFs) in the United States, with a record $1 billion in net inflows reported on March 12. Traders are now speculating whether Bitcoin can surpass the $80,000 mark, given the increasing bullish positions taken by professional traders.

Many analysts believe that Bitcoin is being used as a hedge against the U.S. monetary policy, particularly following the 3.2% rise in the Consumer Price Index (CPI) in February compared to the previous year. This puts pressure on the U.S. Federal Reserve to avoid further interest rate cuts, which could lead to economic recession risks as companies may be less inclined to expand and hire.

On the other hand, if inflation accelerates and the Fed is forced to raise rates, this could pose a threat to risk-on assets like Bitcoin. During uncertain times, investors tend to seek refuge in short-term U.S. Treasury and cash positions, even if they have long-term convictions in the stock market or real estate.

The future of Bitcoin’s bull run and its potential to surpass $80,000 depends on the adoption of spot ETF instruments and a shift in Bitcoin’s risk assessment. Before 2024, Bitcoin faced accessibility challenges for mutual funds and wealth managers due to regulatory uncertainties. However, the approval of the U.S. spot Bitcoin ETF on Jan. 11 changed this landscape.

In the past two weeks, U.S.-listed spot Bitcoin ETF products have attracted nearly $5 billion in capital, making the industry a top contender for institutional investments. Despite concerns about excessive leverage on Bitcoin futures leading to potential liquidations and price corrections, data shows that top traders at crypto exchanges have been initiating leveraged buy positions.

Bitcoin’s futures open interest reached a record high of $35 billion on March 13, with top traders showing confidence in long positions. While there are indications of excessive confidence, it may not necessarily lead to a Bitcoin price crash.

Professional traders’ positions in Bitcoin options markets also reflect moderate excitement, with the 25% delta skew indicating balanced pricing risks for both upward and downward moves. While there are no guarantees of Bitcoin surpassing $80,000 in the short term, the derivatives metrics suggest confidence among traders.

This article provides general information and should not be considered legal or investment advice. The author’s views expressed here are personal and may not reflect those of Global Crypto News.

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