LIVE🚀 Bitcoin’s 2024 journey kicked off with a bang, despite a rocky start🚀
following the long-awaited approval of exchange-traded funds (ETFs) designed to elevate its institutional credibility. But here’s the exciting news: Bitcoin has surged back above $45,000 per coin! 📈
The current price of Bitcoin (BTC) sits at $45,395, per CoinGecko data, marking a nearly 4% increase in the past day and over 5% in the past week. 💰
So, what’s fueling this surge? Analysts suggest several factors, including hoarding by “whales,” are pushing the asset higher. 🐋
Following the approval of 10 Bitcoin ETFs in January, BTC faced a surprising hit. After briefly hitting $49,000, it nosedived when Grayscale, one of the funds, began moving large amounts of crypto to Coinbase.
Grayscale's Bitcoin Fund operated as a closed-end fund previously, requiring investors to hold shares for at least six months. When it became an ETF, many sought to redeem their shares, leading to a massive sell-off by Grayscale. This drove prices below $39,000. 💸
But the sell-off seems to have ended, with BTC bouncing back, partly due to large holders acquiring more assets. 💪
CryptoQuant’s head of research, Julio Moreno, noted that prices stabilized as sell pressure waned, and more whales have been buying BTC. He added that their total holdings are at the highest since November 2022, at 3.9 million BTC. 📊
“Whales” typically hold 1,000 or more BTC and rarely touch it, enjoying substantial gains. Their increased buying activity boosts prices. 🐋
But that's not all. OANDA senior market analyst Craig Erlam pointed out that there’s currently “plenty of appetite for tech,” leading investors to consider both Nasdaq companies and crypto. 💻
CoinShares' head of research, James Butterfill, also suggested that ETF issuers might be buying more BTC. 🔄
BTC ETFs have seen significant success since January, with large inflows into these investment vehicles tracking cryptocurrency prices. Bloomberg data shows cash has entered the funds for nine consecutive days. 💼
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