Bitcoin continues to captivate investors’ attention as it surged by over 20% in the past month, thereby surpassing the much-anticipated level of $50,000 this week.
While questions arise about the rally’s endurance, a notable faction of investors assert the sustainability of the current upward momentum in the leading crypto asset’s trajectory.
$5 Billion Bitcoin Buying Spree
Bitcoin is experiencing a notable period of accumulation by prominent crypto investors known as whales. Recent reports indicate that these wallets have acquired more than 100,000 BTC, valued at approximately $5 billion, in the past ten days alone.
The buying frenzy from these entities signals a strong belief in Bitcoin’s future trajectory. Past instances of such massive accumulations have often preceded significant price shifts, indicating the potential for another upward trend in the market.
#Bitcoin whales have purchased over 100,000 $BTC in the last ten days, worth around $5 billion! pic.twitter.com/JNWvSRll80
— Ali (@ali_charts) February 15, 2024
Digital asset firm 21Shares also observed that Bitcoin’s current accumulation levels are reminiscent of crypto’s bull run in 2021. Contrastingly, this time, the accumulation comes with higher accountability and reduced noise, attributed to the absence of bad actors and a rising institutional interest.
Bitcoin Miners’ Selling Declines
After dumping a substantial amount of BTC in recent weeks, Bitcoin miners have reduced daily sales by nearly 62.5%, thereby becoming reserved sellers. This adjustment is notable despite the decline in fees.
Such a trend suggests that Bitcoin miners may be strategically positioning themselves in anticipation of the upcoming halving, slated for April this year.
In a statement to CryptoPotato, Jag Kooner, Head of Derivatives at Bitfinex,
“The current market movement aligns with a pre-halving rally, a trend observed in previous Bitcoin cycles. Historically, this rally commences approximately eight weeks prior to the halving event and has the potential to push prices beyond previous cycle highs. Notably, the past week marked Bitcoin’s re-emergence as a trillion-dollar asset, largely driven by ETF inflows.”
The exec further added that reduced selling pressure from GBTC and consistent daily inflows of $300-400 million into other ETFs have played a significant role. Moreover, Bitcoin is already closer to its all-time high than before previous halving rallies, partly due to enthusiasm around ETFs.
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