Bitcoin Whales Drive $40,000 Rally
New data suggests that Bitcoin whales have played a significant role in the recent surge in prices. These large investors began accumulating BTC when it was trading around $16,000 and continued to buy as the price rose. The CEO of CryptoQuant believes that US investors, in particular, have been fueling this rally in anticipation of the approval of a BTC Exchange Traded Fund (ETF) and the upcoming Halving event. However, retail investors have yet to fully participate, as indicated by the low liquidity from this group in the market.
More Upside Potential for BTC
Analysts also point out that whales are attracting liquidity to the market with their buying activity. Once enough liquidity is present, whales can take profits by selling their coins to retail investors. Despite the recent pullback in prices, one analyst sees this as an opportunity to buy BTC, citing the significant bid liquidity as a reason to remain bullish on Bitcoin’s future prospects.
Hot Take: Bitcoin Continues to Surge
Bitcoin’s price rally has been driven by the actions of whales and increased buying from US investors. While retail investors have been slower to join the rally, there is still potential for further upside. With bid liquidity remaining high, there are indications that the game is not over yet for Bitcoin. As 2023 comes to a close, Bitcoin approaches the $50,000 mark with two major catalysts on the horizon. The cryptocurrency market continues to break resistance levels and set new yearly highs.
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