In a pivotal move renowned for creating the Bollinger Bands indicator, John Bollinger has taken to the X social media platform to deliver an optimistic forecast for the global cryptocurrency community. In a recent X post, he expressed confidence in a forthcoming halt to the ongoing Bitcoin sell-off.
BTC experienced a noteworthy surge, marking a 5.52% increase and surpassing the $42,000 price threshold. However, the bullish momentum was short-lived, as BTC retraced to $41,429 overnight. Subsequently, another ascent occurred, placing BTC in the $41,837 range at the reporting time.
Source: TradingView
Bitcoin’s Rollercoaster Ride
Bitcoin has witnessed a substantial uptick of 7.86%, rising from the $38,705 price level. This upward trajectory follows a period in which traders and investors divested portions of their BTC holdings. The catalyst for this sell-off was the American Securities and Exchange Commission’s approval in mid-January for spot Bitcoin ETF issuers to trade exchange-traded funds linked to the spot price of BTC.
A significant player in the crypto ETF landscape, Grayscale, has been experiencing a decline in its Bitcoin holdings. Following the SEC’s approval, BTC initially surged above $42,000 but faced a sudden downturn as traders sought to capitalize on profits. Some investors redirected funds to new Bitcoin ETFs offered by prominent financial institutions like BlackRock, Fidelity, VanEck, Ark Invest, and other Wall Street hedge funds, totaling 11 in number.
Notably, Grayscale Bitcoin Trust spot ETF stands out as an exception. With the conclusion of the mandatory lock-up period for customers’ BTC, Grayscale clients have begun substantial withdrawals from the GBTC Trust. Concurrently, Grayscale itself has been offloading substantial amounts of Bitcoin.
In the last 24 hours, nearly $1 billion worth of BTC has been transferred to Coinbase Institutional through four sizable transactions executed by anonymous whales. Simultaneously, an equivalent amount of BTC was withdrawn from the platform in 13 transfers, each involving approximately 1,400 BTC. This surge in BTC whale activity coincides with the resumption of an upward trajectory for BTC, signaling heightened market dynamics in the cryptocurrency space.