Bitcoin hit a record high of $106,533, with large wallet holders increasing by 9.9% since October 10.
The total cryptocurrency market cap has surged to $3.8 trillion, with Bitcoin up 65% in Q4 and altcoins showing recovery.
Bitcoin’s historic rally reached a new milestone, hitting $106,533, according to CoinMarketCap. According to Santiment, a blockchain analysis firm, large Bitcoin investors have been on the rise during this rally.
$BTC In a tweet, Santiment said the number of wallets holding 100 BTC or more has risen by 9.9%, with 1,582 new wallets created since October 10. This increase speaks volumes about the increasing confidence of institutional and high-net-worth investors in Bitcoin as it continues to rise.
$BTC Consequently, after reaching its record high, Bitcoin’s price retraced to $104,543. The cryptocurrency has risen 8.4% this month after having rallied 37.32% in November and 10.95% in October. In the last quarter of the year, Bitcoin has gained 65% and is still two weeks into the period.
This rally is consistent with the other indicators of increased investor confidence, including the 0.3% weekly rise in the Nasdaq Composite index and anticipation of the Federal Reserve’s rate cut. The probabilities for a 25-basis point cut now stand at 96% for the Fed’s two-day meeting that ends on Wednesday. Lower rates often Favour Bitcoin as it tracks technology companies and is affected by macroeconomic conditions, including a weakening dollar and high money supply.
Speculation Grows Over U.S. Bitcoin Reserve
$BTC Bitcoin investments have also been boosted by statements by former President Donald Trump, who hinted at forming a strategic Bitcoin reserve. During an interview with CNBC, Trump mentioned that the U.S. has to become the leader in the cryptocurrency industry, similar to its strategic oil reserves.
Currently, about 2.2% of all Bitcoin is owned by governments, with the U.S. alone holding almost 200,000 BTC, worth more than $20 billion. Other countries such as China, Bhutan, and El Salvador also possess large reserves of gold, which implies the value of the asset.
Vladimir Putin, the Russian president, recently criticized the US dollar for being used as a weapon and called for the adoption of digital currencies such as Bitcoin. Although these developments emphasize Bitcoin‘s increasing importance, analysts also expressed some concerns about setting up a national reserve, which can be quite complex and may result in market instability.