Bitcoin Surges Above $45,000 as Whales Buy In
Bitcoin’s price has rebounded and is now at $45,395, thanks to a 4% jump in the past day and a 5% increase over the past week. Analysts believe that several factors, including hoarding by “whales,” are contributing to this surge.
Grayscale’s Bitcoin Fund ETF Conversion Caused a Price Decrease
Following the approval of 10 Bitcoin ETFs in January, Bitcoin experienced a surprising hit. Grayscale, one of the funds, started shifting large amounts of its crypto to Coinbase after converting to an ETF. This led to a significant sell-off and a price decrease below $39,000.
“Whales” Buying BTC and Tech Appetite Drive Price Up
However, the sell-off seems to be over as big holders of Bitcoin are now buying more digital coins. CryptoQuant’s head of research notes that “whales” hold 3.9 million BTC, the highest since November 2022. Additionally, there is an appetite for tech investments, leading investors to consider both Nasdaq companies and cryptocurrencies like Bitcoin.
Possible Influence of ETF Issuers
Another factor contributing to the surge could be ETF issuers buying more BTC. Bitcoin ETFs have seen significant inflows since their launch in January, with cash consistently entering these investment vehicles for nine consecutive days.
Hot Take: Bitcoin Recovers from Recent Slump
Despite a rocky start in 2024, Bitcoin has managed to bounce back above $45,000 per coin. Factors such as hoarding by “whales,” appetite for tech investments, and potential influence from ETF issuers have contributed to this recovery. As Bitcoin continues to regain momentum, the cryptocurrency market remains dynamic and influenced by various factors.
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