The price of Bitcoin has stabilized above $69,000, specifically at $69,840 at the time of writing. While altcoin rallies have weakened due to falling below the $70,000 mark, crucial signals for performance are emerging as the halving is less than a month away. This data could heighten investors' risk appetite.
Bitcoin (BTC) Whales
As BTC approaches its block reward halving, the Bitcoin price has hit a record high before the event. Investor's increased risk appetite is evident through demand surpassing $11 billion in the spot Bitcoin ETF channel. Furthermore, large BTC holders seem optimistic about potential future gains.
Data from Santiment indicates a rise in the proportion of Bitcoin whales holding between 1,000 and 10,000 BTC from 23% on January 1 to 25.17% currently. The percentage of those holding between 10,000 and 100,000 BTC has also increased from 11.68% to 12.42% within a short period.
Potential Cryptocurrency Surge
The promising data around BTC's price increase also signals a potential recovery in the cryptocurrency market. Additionally, BTC inflows to exchanges are declining based on a Glassnode report. Deposits of BTC to exchanges have dropped to 55,505 on March 25 from around 109,000 on March 5.
Decreasing BTC sent to exchanges is a positive indicator for price movements, especially in conjunction with whale activity, hinting at the possibility of new price highs around the halving period. Glassnode analyst Marcin Miłosierny expressed optimism about the strong buying demand and supply dynamics influenced by long-term investors.
Rekt Capital's chart suggests that Bitcoin is still in an accumulation range as the halving nears. Consequently, as the event approaches, it is likely that the price will consolidate at higher levels.
According to Daan Crypto Trades, maintaining the Bitcoin price above $70,000 could lead to reaching six-figure prices, offering optimism for a new all-time high by the end of 2024.
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