 ▲ Bitcoin (BTC) Investment |
Despite worsening geopolitical tensions between the United States and Iran, Bitcoin (BTC) has continued its relentless rally, surpassing $73,000 on the back of massive institutional inflows and robust activity in the derivatives market.
According to investment media outlet FXStreet on March 5 (local time), Bitcoin broke out of its weeks-long range below $70,000 and climbed above $73,000 during intraday trading. As risk appetite revived alongside a recovery in the U.S. stock market, more than $1.14 billion flowed into U.S. spot Bitcoin exchange-traded funds (ETFs) this week alone. Notably, $461.9 million poured in on Wednesday alone, bringing total net assets to $93.14 billion. This powerful institutional demand is strongly underpinning overall market sentiment.
On-chain data also clearly shows accumulation by high-net-worth investors moving in tandem with institutions. According to blockchain analytics platform Santiment, whale investors holding between 10,000 and 100,000 BTC increased their holdings from 2.24 million to 2.26 million coins on Wednesday, accounting for 11.32% of the total circulating supply. This suggests that large capital holders are strongly confident in further upside for Bitcoin.
The surge is further fueled by heightened activity in the derivatives market and among retail investors. CoinGlass data shows that Bitcoin open interest jumped from $43.95 billion the previous day to $49.67 billion on Thursday, indicating active leverage use and new position building. Meanwhile, Coinbase’s Bitcoin premium index reached 0.0227%, signaling that U.S. retail investors are willing to pay higher prices than the global average to accumulate Bitcoin, reflecting strong buying pressure.
Market analysts’ outlook remains largely positive. According to data from Unbias, which tracks top cryptocurrency analysts, 77% of market experts support a bullish scenario, citing strong ETF accumulation over the past three days. However, the remaining 23% with a bearish view warn of potential downside risks stemming from Bitcoin’s correlation with U.S. tech stocks, which experienced more than $388 million in outflows in February, advising investors not to lower their guard.
From a technical perspective, Bitcoin’s short-term direction hinges on whether it can break above the 50-day exponential moving average (EMA) resistance at $74,409, which is currently trending downward. The daily chart’s Moving Average Convergence Divergence (MACD) is expanding its positive histogram, signaling upward momentum, while the Relative Strength Index (RSI) stands at 57, indicating buying strength. A successful breakout above this resistance could extend the rally toward the 50% Fibonacci retracement level at $78,258. However, failure to break higher and a drop below the $70,000 support level could expose Bitcoin to a decline toward $68,839.
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