Bitcoin Surges 10% as Whales Accumulate and Trump’s Inauguration Approaches
The cryptocurrency market has witnessed a significant surge in bullish sentiment, with Bitcoin (BTC) leading the charge. The asset has gained 10% in the past week, reclaiming the $102,000 level and reversing nearly all losses from early December. This upward trend has sparked optimism among traders, who are now eyeing the $109,000 level as a potential short-term target.
Whales Accumulate Bitcoin as ETF Inflows Reach Record High
U.S.-listed spot Bitcoin exchange-traded funds (ETFs) have seen a massive influx of capital, with $987 million pouring in on Monday, the highest since November 21. Fidelity’s FBTC led the charge with $370 million in inflows, followed by BlackRock’s IBIT with $209 million and Ark Invest’s ARKB with $71 million. This significant investment from institutional investors has contributed to the recent price surge.
Trump’s Expected Crypto Policies Fuel Market Optimism
The impending inauguration of Donald Trump as U.S. president has brought back positive sentiment among traders. Trump’s expected crypto policies and broader economic plans have sparked hopes of a more favorable regulatory environment, which has contributed to the recent price increase. According to Jeff Mei, COO at crypto exchange BTSE, “The demand for bitcoin is manifesting itself after a downbeat Fed outlook in late December put the brakes on a Santa Claus rally.”
Technical Analysis Suggests Further Upside Potential
Technical analysts believe that the current price movement is a classic correction completion, with a resumption of growth from the Fibonacci retracement level of 61.8% of the rally since the beginning of November. Alex Kuptsikevich, FxPro chief market analyst, notes that “This scenario will be confirmed if the historical highs of around $109,000 are confidently breached. At the same time, we expect Bitcoin’s growth to accelerate after the $100,000 mark.”
Market Volatility Expected to Remain Low Until NFP Report
Market volatility is expected to remain low until the U.S. Nonfarm payrolls (NFP) report on Friday, which is expected to kick-start the new trading year with “decision-makers fully back at work.” However, strong NFP data could strengthen the U.S. dollar, potentially leading to higher interest rates, which can negatively affect risk assets like stocks and bitcoin.
Conclusion
In conclusion, the recent surge in Bitcoin’s price is attributed to a combination of factors, including the accumulation of whales, Trump’s expected crypto policies, and technical analysis suggesting further upside potential. As the market awaits the NFP report and the FOMC meeting at the end of the month, traders are advised to remain cautious and monitor market developments closely.
Source: Coindesk.com
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