After a period of muted market activity, Bitcoin is showing renewed strength, with demand surging notably in the past week. Following a quiet stretch since May, Bitcoin (BTC) saw a 5% increase in demand, signaling a positive shift in the market. The cryptocurrency also outperformed a broader index tracking major digital assets, rising by 11%, compared to the index’s 9.6% increase.

This spike in demand has prompted predictions that Bitcoin may soon reach new highs, with some analysts suggesting it could break the $70,000 barrier.

Analysts Predict $70K Bitcoin as Demand Grows

Crypto analyst Moreno noted that for Bitcoin to hit new all-time highs, the market would need to see a significant increase in demand—between 490,000 and 550,000 BTC. With last week’s 177,000 BTC surge, many experts believe that Bitcoin still has room to grow and could be poised to reach unprecedented price levels.

Historical data shows that Bitcoin’s previous price records in 2020, 2021, and now in 2024 were all preceded by strong demand spikes, adding credibility to the current bullish predictions.

ETFs Drive U.S. Bitcoin Growth

In the United States, spot Bitcoin exchange-traded funds (ETFs) have played a key role in boosting demand. Institutional investors have been particularly active, with U.S. Bitcoin ETFs seeing a massive influx of $458.5 million in one day alone. BlackRock’s IBIT fund led the charge, receiving $393.4 million in investments.

The growing interest from large investors, also known as “Bitcoin whales,” has helped push Bitcoin’s holdings among these players to 670,000 BTC. These investments have kept Bitcoin’s growth trend above its 365-day moving average, a positive indicator for future price gains.

Further fueling the market, Bitcoin’s open interest funding rate for perpetual futures hit a multi-month high of 0.0136%. This suggests that new money is entering the market, potentially leading to greater volatility and more significant price swings in the coming weeks.

Polymarket Bettors Show Confidence in Bitcoin’s Future

The rising demand and strong market fundamentals have also boosted confidence among polymarket bettors, who are predicting a 64% chance that Bitcoin will reach $70,000 by the end of October. Bettors also estimate a 75% likelihood that Bitcoin will hit a new all-time high sometime in 2024, marking a significant increase in optimism compared to previous weeks.

Meanwhile, dog-themed cryptocurrencies like Dogecoin (DOGE) have also seen a surge in value, with DOGE rising 5.8% following news of Elon Musk’s $75 million donation to a Trump-affiliated political group. BONK, a Solana-based rival to Dogecoin, saw an even larger spike of 9% as it gained momentum during Asia’s Wednesday trading session.

As demand for Bitcoin and related assets continues to grow, the market remains optimistic about the future, with many investors eyeing new record highs before the year’s end.