Bitcoin surged past the $45,000 mark on Tuesday, marking its highest value since April 2022. This bullish momentum has reignited optimism across the cryptocurrency market, with all eyes on the potential approval of exchange-traded spot Bitcoin funds.
Renowned analyst Ali Martinez has shed light on a fascinating development behind the recent surge. It appears that significant whale activity is propelling Bitcoin’s climb beyond the $45,000 threshold.
Over the past week, these crypto behemoths have amassed a staggering 30,000 BTC, coinciding with a notable increase in their transaction count. The accumulation of whales could very well be the driving force behind the current upward trajectory of Bitcoin’s value.
Bitcoin’s Sudden Outflow Shakes Market
However, the celebratory atmosphere took an unexpected turn on January 3rd, the 15th anniversary of Bitcoin’s ‘genesis’ day. The original cryptocurrency experienced an abrupt and substantial outflow, erasing a considerable portion of its recent gains. The catalyst for this plunge was the panic that ensued following the United States regulators’ rejection of the spot exchange-traded fund (ETF).
Within hours of the rejection news, BTC plummeted by $4,000, causing a ripple effect in the market. The sharp decline triggered half a billion dollars worth of crypto-long liquidations. The clash occurred when Matrixport’s latest report cast a shadow on the crypto horizon.
The report suggested that the SEC would likely reject all Bitcoin spot ETFs in January, with the final approval potentially coming in the second quarter. Furthermore, the report predicted a fall in Bitcoin’s price to the range of $36,000 to $38,000. In response, it recommended investors consider purchasing put options or even directly shorting BTC.
On that Bloomberg ETF Analyst, Eric Balchunas said:
We have heard nothing to indicate anything but approval but I want to give the guy the benefit of the doubt so I’m asking if he has any sources or if he speculating. He seems to be a BTC bull and recently tweeted that “executives” said approval is likely.
As of the latest data, the current price of Bitcoin is $43,066, accompanied by a 24-hour trading volume of $193.48 billion. In the last 24 hours, Bitcoin has experienced a 6.55% decrease in value and a 1.27% dip in the seven-day chart.
The market remains on edge as investors navigate through the volatile terrain, balancing the anticipation of regulatory developments and the impact of whale-driven market dynamics. The crypto community now eagerly awaits the events unfolding in this unpredictable saga, the crypto market.
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