Bitcoin (BTC) has reached a new milestone, surpassing $71,000 for the first time since March 15. This surge in price can be attributed to several factors, including increased investment from large Bitcoin holders, anticipation of the upcoming Bitcoin halving event, and positive sentiment among institutional investors.
Large Bitcoin investors, also known as whales, have been accumulating more BTC in anticipation of future price increases. Data from market intelligence firm Santiment shows that the percentage of wallets holding between 1,000 and 10,000 BTC has increased from 23% on Jan. 1 to 25.17% on March 26. The percentage of wallets holding between 10,000 and 100,000 BTC has also seen a spike, indicating strong accumulation.
In addition to increased accumulation, there has been a reduction in BTC deposits on exchanges. This suggests that investors are not intending to sell their BTC, which is generally seen as a bullish sign. Instead, there has been an increase in the number of whales transferring Bitcoin from exchanges to self-custody wallets, further supporting the idea that they are holding onto their BTC.
The upcoming Bitcoin halving event, scheduled for April this year, is also contributing to the rise in Bitcoin’s price. Market data provider Glassnode predicts that the buying power of ETFs (exchange-traded funds) will overshadow the traditional supply squeeze effect expected from the halving. This event will cut the reward for mining new blocks in half, reducing the BTC rewards issued to miners. Traders are advised to closely monitor the activity of long-term holders, as their decisions can significantly impact market liquidity and sentiment.
Bitcoin traders and analysts are now focusing on the next price level for BTC after its rally above $70,000. Whales have added more than 80,000 BTC when the price dropped to $64,000, indicating strong support at that level. Traders are determined to hold the price above $70,000, and some believe that $100,000 could be the next target for the BTC price.
The factors contributing to Bitcoin’s rally include increased accumulation by large investors, anticipation of the halving event, and positive sentiment among institutional investors. Bitcoin’s price surge demonstrates the continued interest and confidence in the cryptocurrency market.
