- Bitcoin’s recent rally sparks optimism as a significant whale injects $3.22 billion into the market.
- New Bitcoin ETFs attracted $340 million signaling sustained interest despite outflows.
In the past few days, Bitcoin [BTC] has sparked considerable optimism within the cryptocurrency community, thanks to its impressive rally. This upward trend has not only boosted confidence but also attracted a surge of new liquidity into the market.
Notably, large addresses, often referred to as “whales” in the crypto space, have re-entered the scene, injecting substantial funds into the market.
Whales move in
Over the last 26 hours alone, a prominent whale received a noteworthy infusion of 148.5 million USDT from TetherTreasury, directing these funds to various exchanges.
Interestingly, this isn’t an isolated event, as the whale has been actively contributing to the crypto market’s liquidity, injecting a substantial 3.22 billion USDT since 20th October, 2023.
The whale’s active participation can serve as a confidence booster for both retail and institutional investors, signaling that influential players might be willing to participate in the market yet again and accumulate more BTC.
Source: X
Impact of ETFs
Moreover, other factors that can impact liquidity would be the new spot ETFs.
According to Crypto Quant’s analyst Cristian Palusci, the latest trading session witnessed new Bitcoin ETFs attracting inflows totaling $340 million, despite outflows of approximately $160 million from the Grayscale Bitcoin Trust and Invesco Galaxy.
The preceding day saw a price increase prior to the US trading session, followed by predominantly sideways movement.
It appears that traders may be attempting to anticipate buying pressure during the Wall Street session, with ETFs consistently withdrawing BTC from the market at a pace reminiscent of an industrial vacuum cleaner.
Post the $50,000 breakout, gauging how much further Bitcoin can advance without a correction becomes uncertain.
Nevertheless, a significant drop in Bitcoin’s value seems improbable if the trend of daily net inflows ranging between 300 and 500 million dollars persists, particularly considering that the BTC involved remains withdrawn from the market for an extended period.
Read Bitcoin’s [BTC] Price Prediction 2024-25
This scenario aligns closely with the impending halving, which could trigger a monumental supply crunch.
Source: Crypto Quant
At press time, BTC was trading at $52,246.32 and it had grown by 1.52% in the last 24 hours. The total number of holders remained the same during this period. This suggested that it was old holders that continued to accumulate Bitcoin.
Source: Santiment
