Bitcoin Price Inches Closer to All-Time High as On-Chain Activity Soars
The world’s largest cryptocurrency, Bitcoin (BTC), is on an unstoppable price rally, with the BTC price surging to $64,000. This puts the Bitcoin price just 10% away from hitting a new all-time high, leaving investors eagerly watching the market.
The massive trading activity registered by Bitcoin ETFs and the excitement surrounding the upcoming Bitcoin halving are contributing to the bullish sentiment in the market.
Bitcoin Price Faces Brief Rejection at $64,000
Despite its impressive rally, the Bitcoin price faced some rejection at $63,750 and partially reversed. However, at press time, Bitcoin is still trading 8.26% up on a 24-hour chart at a price of $61,686 and a market cap of $1.21 trillion.
In the span of just 12 hours, the entire crypto market witnessed liquidations totaling $580 million. This includes $308 million from long positions and $276 million from short positions, according to data from Coinglass.
Despite facing resistance under $60,000, the BTC price is once again moving upwards thanks to strong on-chain metrics. On-chain data provider Santiment has highlighted some significant metrics:
- $35.37 billion in on-chain transaction volume
- Over 283,000 unique tokens moved
- 3,661 whale transactions worth $1 million or more
Crypto analyst Ali Martinez suggests that Bitcoin currently faces no significant resistance ahead but instead has a substantial support barrier between the price range of $54,300 and $56,200. This range has seen around 903,540 addresses accumulate nearly 500,000 BTC, indicating strong buying interest and reinforcing support levels for Bitcoin.
U.S. Government Moves $1 Billion in Bitcoin
The U.S. government recently made a significant move involving Bitcoin. One of the wallets, believed to hold seized Bitfinex hacker funds on behalf of the U.S. government, initiated the transfer of 1 BTC, followed by the remaining 2,817 BTC from the wallet. These transactions amounted to around $173 million worth of Bitcoin.
Another wallet holding about 12,300 BTC also made transfers, with approximately 0.01 BTC sent to an unidentified address before the rest of the BTC from that wallet was transferred out as well. These transfers totaled approximately $750 million, bringing the combined value of Bitcoin transferred from both wallets to about $923 million.
While this could potentially create selling pressure on BTC, it is important to note that $1 billion in sell-off represents less than 0.01% of the total Bitcoin market cap. Additionally, whistleblower Edward Snowden has suggested that the U.S. government could be secretly buying Bitcoins this year to reduce its national debt.
Hot Take: Bitcoin Gains Momentum Amidst Rising On-Chain Activity
The Bitcoin price continues its upward momentum as it inches closer to its all-time high. With strong on-chain metrics and solid support levels, Bitcoin remains attractive to investors and traders.
The recent moves by the U.S. government involving Bitcoin highlight the growing acceptance and adoption of cryptocurrencies at a governmental level. While these transactions may have short-term effects on the market, they do not significantly impact Bitcoin’s overall value or trajectory.
As Bitcoin gains mainstream recognition and institutional support, its future looks promising. The upcoming Bitcoin halving event and increasing on-chain activity further contribute to its bullish outlook.
Investors should keep a close eye on the Bitcoin price and monitor any developments in the crypto market. With the potential for new all-time highs, it is an exciting time for Bitcoin enthusiasts.
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