Bitcoin hits $71,000, analysts see next target at $83,000
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Bitcoin hits $71,000, analysts see next target at $83,000
The market ignores outflows from spot Bitcoin ETFs.
Navigating Web3 tides with focused insightsBy Mary Liu, Bitpush News
In the final week of March, Bitcoin staged a strong rebound, reclaiming the $70,000 level. According to Bitpush terminal data, BTC briefly reached $71,239.31 by the close of U.S. markets, marking an 8% gain over 24 hours. Ethereum rose 7.4% to $3,634.80.
Among the top 10 cryptocurrencies by market capitalization, Solana (SOL) and Avalanche (AVAX) posted the largest gains in the past 24 hours. SOL surged over 9%, while AVAX jumped from $53.60 to $58.30, a rise of 8.87%.
Outside the cryptocurrency market, major U.S. stock indices saw slight bearish adjustments. The S&P 500 fell 0.12%, and the Nasdaq dropped 0.14%. However, crypto-related stocks rallied sharply—MicroStrategy surged 21%, Coinbase climbed 9%, and mining firms benefited as well, with Riot Platforms up 9%, CleanSpark rising 19%, and Cipher Mining gaining 13%.
BTC Supply on Coinbase Hits Nine-Year Low
On exchange supply, Coinbase’s Bitcoin reserves hit a nine-year low of 344,856 BTC on March 18. According to data provider Glassnode, Coinbase's BTC holdings had last been at a similar low in 2015, indicating that investors have resumed accumulating BTC outside exchanges.
Data from CryptoQuant shows that as of March 25, total Bitcoin reserves across all exchanges reached 1.92 million BTC—the lowest in three years—suggesting further upside potential for Bitcoin’s price, especially as exchange supplies sit at historic lows while ETF demand continues drawing in billions of dollars.
Market Ignores Outflows from Spot Bitcoin ETFs
The market appears unfazed by recent outflows from U.S. spot Bitcoin ETFs. Grayscale’s Bitcoin Trust (GBTC) continues to see sustained outflows, while subscription interest in BlackRock and Fidelity products has slowed. The 10 spot ETFs experienced their worst week since their January launch, with GBTC recording $1.9 billion in outflows last week alone.
According to BitMEX Research, BlackRock’s iShares saw inflows totaling $828.3 million last week, far below the $2.48 billion recorded in the week ending March 15. Investor appetite for new funds from BlackRock and Fidelity has not been sufficient to offset selling by Grayscale holders.
Analysts say Grayscale outflows stem from its fees being significantly higher than competitors’, along with sell-offs by bankruptcy trustees.
Morningstar ETF analyst Bryan Armour noted that Grayscale chose to maintain its converted ETF’s management fee at 1.5%, compared to BlackRock’s 0.25%, with other rivals charging even lower rates, including fee waivers.
Grayscale faces additional challenges. Last week, digital wealth manager Wealthfront announced it would replace Grayscale’s ETF with iShares funds, citing lower fees and higher average daily trading volume.
“Considering both the total expense ratio and the practical buy/sell costs reflected in bid-ask spreads, we believe IBIT is overall the most attractive,” said Alex Michalka, Vice President of Investment Research at Wealthfront.
Adam Sze, Head of Digital Asset Products at ETF provider Global X, said, “Anytime an asset reaches historical highs, profit-taking tends to occur—or at least buying momentum slows.”
It appears that reigniting flows into Bitcoin ETFs may depend not only on greater price stability but also on clearer signs of institutional investor interest.
Kyle Da Cruz, Director of Digital Asset Products at VanEck, said that so far trading activity has largely been driven by retail investors and some hedge funds. Spot ETFs remain a nascent asset class, and “sticky capital” has yet to enter.
Nathanaël Cohen, Co-Founder of digital asset hedge fund INDIGO Fund, said: “Despite sluggish ETF inflows, buy order volume near $60,000 remains high, suggesting the market is eager to buy the dip.”
Bitcoin Target Price Set at $83,000 or Higher
After hitting a record high of $73,797.68 on March 14, Bitcoin entered a consolidation phase over the past week. On Wednesday, BTC dipped to a low of around $60,800. Alex Thorn, Global Research Head at Galaxy Digital, said this pullback was “entirely consistent with normal short-term corrections seen in historical bull markets.”
Sam Callahan, Chief Analyst at Bitcoin services firm Swan Bitcoin, suggested the move might be linked to signals from the Federal Reserve last week.
In an interview with Bloomberg, Callahan said: “Fed officials made it clear last week they are considering rate cuts and slowing the pace of quantitative tightening this year. Such actions would improve liquidity conditions and act as a positive catalyst for asset prices. Bitcoin acts as a barometer for liquidity conditions and responded positively to Fed signals that monetary policy could ease in the near future.”
Research firm 10x Research stated in a Monday report that Bitcoin could reach new all-time highs following a breakout from its consolidation pattern. Based on a symmetrical triangle formation—a chart pattern used in technical analysis—the breakout could drive BTC toward $83,000.
The report emphasized that Bitcoin historically performs well during U.S. election years—such as 2024—with average gains ranging from 100% to 200%, supporting the case for higher prices later this year.
“Our upside targets of $83,000 and $102,000 could gradually materialize,” said Markus Thielen, founder of 10x.
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