Bitcoin News Cryptocurrency Editor's Picks

Bitcoin Achieves a Major Surge, Surpassing $45,000, Here Are the Reasons

bitcoin

TL;DR

  • Bitcoin price surged by 5.14% in the last hours, surpassing $45,300, a level unseen since the approval of Bitcoin spot ETFs in January.
  • Accumulation of BTC by large investors increased significantly, with approximately 73 new addresses now holding 1,000 BTC or more, marking a 3.66% increase in the last two weeks.
  • Grayscale’s selling pressure, the issuer of the GBTC Spot Bitcoin ETF, was a key factor in the recent BTC market volatility, but it has recently reduced its sales, alleviating the selling pressure and contributing to the rebound.

Bitcoin price surged by 5.14% in the last hours, surpassing the $45,300 mark for the first time since the approval of Bitcoin spot ETFs in January. This sudden increase sparked interest and speculation in the community about the possible reasons behind this bullish trend.

One of the main reasons identified is the continuous accumulation of Bitcoin by large investors, commonly known as “whales.” According to Glassnode data, approximately 73 new addresses now hold 1,000 BTC or more, representing a 3.66% increase in the last two weeks. This accumulation pattern suggests a bullish sentiment among institutional and high net worth investors.

Institutional Capital Flow Is Flooding the Bitcoin Market

The selling pressure exerted by Grayscale, the issuer of the GBTC Spot Bitcoin ETF, was also a significant factor in the recent BTC market volatility. Grayscale’s significant BTC selling contributed to Bitcoin’s price drop below $40,000 in previous weeks. However, in recent weeks, Grayscale has reduced its sales, easing the selling pressure in the market and possibly contributing to the recent price rebound.

bitcoin cmc

Furthermore, the success of BTC ETFs in the institutional market has led to an increase in Bitcoin demand. Major asset managers, such as BlackRock, accumulated a significant amount of BTC in response to their institutional clients’ demand. These asset managers are now estimated to hold over 657,000 BTC, representing more than 3% of BTC’s circulating supply. This massive accumulation by major financial institutions further exacerbated BTC scarcity in the market and drove prices higher.

Another factor that may have influenced the price increase is the anticipation of the potential approval of Bitcoin spot ETFs in Hong Kong. With 10 applications submitted to the country’s financial regulators, there is growing optimism that these products may be approved soon. This could bring additional institutional capital flow to the market and further increase its price.

Related posts

30% of citizens of the Russian Federation believe that 30,000 rubles is an excellent pension

alfonso

Another Company is Affected by FTX Bankruptcy and Loses Nearly 300 Million Dollars

Joseph Alalade

Judge Allows Lawsuit Against Silvergate for Alleged Complicity in FTX Fraud

fernando