Bullish March Marks Record for Bitcoin

Bitcoin
(BTC)
concluded
the
month
of
March
at
approximately
$71,300,
marking
a
16.6%
increase
from
the
previous
month’s
closing
value
of
around
$61,150.
This
monthly
surge
represents
a
historic
milestone
for
BTC
price
action.
March
witnessed
the
seventh
consecutive
month
of
price
growth
for
BTC,
a
first
since
its
inception.

The
sustained
price
appreciation
began
in
Q4
2023,
as
market
participants
anticipated
a
high
probability
of
BTC
Spot
ETFs
approval
in
January.
This
anticipation
was
followed
by
the
actual
approval
of
BTC
Spot
ETFs
in
early
January
2024.
Throughout
Q1,
BTC
surged
from
$42,300
at
the
beginning
of
the
year
to
approximately
$71,300,
reflecting
a
64.7%
increase
in
price.
However,
in
the
first
few
days
of
April,
BTC
witnessed
a
decline,
with
the
price
hovering
around
$66,500
at
the
time
of
this
writing.

The
recent
price
growth
is
primarily
fuelled
by
demand
for
BTC
Spot
ETFs,
which
have
accumulated
over
$12
billion
in
net
inflows
since
their
inception.
Last
week,
BTC
Spot
ETFs
saw
approximately
$850
million
in
net
inflows,
followed
by
$85
million
in
outflows
on
April
1st
and
$40
million
in
inflows
on
April
2nd.

While
there
is
still
strong
overall
net
inflow
in
BTC
Spot
ETFs,
there
is
also
evidence
of
reduced
sustained
demand
and
some
profit-taking,
leading
to
a
slower
pace
of
cumulative
inflows
compared
to
previous
months.
This
is
to
be
expected,
considering
that
the
majority
of
BTC
Spot
ETF
investors
are
already
in
profit,
given
that
BTC
was
priced
between
$40,000
and
$45,000
at
the
time
of
their
launch.

The
upcoming
BTC
halving
event,
currently
expected
for
April
20th,
just
seventeen
days
away,
will
halve
block
rewards
for
miners
from
6.25
to
3.125
BTC,
potentially
impacting
mining
companies.
With
BTC
block
rewards
decreasing
and
the
BTC
hashrate
consistently
rising
over
the
past
few
years,
the
profitability
of
mining
farms
has
steadily
declined,
necessitating
greater
capital
efficiency
to
remain
viable.

This
dynamic
compels
mining
companies
to
optimize
capital
efficiency
and
seek
cheaper
electricity
sources,
leading
to
an
increasing
use
of
renewable
energy
in
BTC
mining.
The
BTC
mining
rewards
mechanism
inherently
drives
greater
efficiency
with
each
step,
enhancing
network
security,
reducing
carbon
emissions,
and
promoting
research
into
sustainable
block
confirmation
methods.

Historically,
BTC
halving
events
have
marked
significant
points
followed
by
9-18
months
of
uptrend,
culminating
in
cycle
peaks.
However,
for
the
first
time,
BTC
reached
its
all-time
high
in
anticipation
of
the
halving,
indicating
a
departure
from
previous
cycles.
If
historical
patterns
repeat,
we
may
witness
an
uptrend
for
the
remaining
nine
months
of
2024,
leading
to
a
cycle
peak
expected
between
Q4
2024
and
Q2
2025.