Ali’s analysis revealed that about 67 new entities have joined the elite group of Bitcoin holders who own more than 1,000 BTC, marking a 4.50% increase in such holdings within just two weeks.<\/p>\n
\nWhile some shivered with fear during the recent price correction, #Bitcoin<\/a> whales were accumulating more $BTC<\/a>!<\/p>\n
Around 67 new entities now hold 1,000 #BTC<\/a> or more, marking a 4.50% increase in two weeks. pic.twitter.com\/tje3fhznRR<\/a><\/p>\n
\u2014 Ali (@ali_charts) January 30, 2024<\/a><\/p><\/blockquote>\n
This move by the whales goes against the prevailing market sentiment. Despite the price volatility and uncertainties that have gripped the broader crypto space, it suggests a bullish outlook from these major players.<\/p>\n
Related Reading: Why Is Bitcoin Price Up Above $43,000 Today?<\/a><\/div>\nBitcoin Resilience And Recovery: Factors At Play<\/h2>\n
In stark contrast to its recent price slump, Bitcoin has shown resilience<\/a>, charting a course of recovery. The cryptocurrency has witnessed a surge of over 10% in value over the past week, with a notable increase of 3.2% in the last 24 hours alone, bringing its trading price to approximately $43,412<\/a>.<\/p>\n
BTC price is moving sideways on the 2-hour chart. Source: BTC\/USDT on TradingView.com<\/a><\/figcaption><\/figure>\n This upward trajectory is mirrored in the cryptocurrency’s trading volume, which has escalated from below $15 billion to over $24 billion in a single day, indicating renewed investor interest and market confidence.<\/p>\n
The resurgence in Bitcoin’s price can be attributed to multiple factors<\/a>, with the diminishing impact of Grayscale’s sell-off being a primary contributor.<\/p>\n
Bloomberg analyst James Seyffart recently highlighted a milestone event where BlackRock\u2019s Spot Bitcoin ETF, IBIT, nearly matched<\/a> Grayscale\u2019s GBTC regarding trading volume. This was a significant moment, as it marked the closest any spot Bitcoin ETF has come to challenging GBTC, which has long held the “liquidity crown” in the crypto spot ETF space.<\/p>\n
The positive implications of this development for Bitcoin’s price are clear. With IBIT’s volume mainly consisting of inflows, it can potentially offset the outflow-dominated volume from GBTC.<\/p>\n
Reduced Selling Pressure And Market Optimism<\/h2>\n
Notably, Grayscale’s conversion of GBTC to a spot Bitcoin ETF had been a key factor in Bitcoin’s drop below $39,000 in the past week, leading to a wave of sell-offs from GBTC investors.<\/p>\n
However, recent trends indicate a cooling off among GBTC investors in their rush to take profits. BitMEX Research, in a post on X, pointed<\/a> out that GBTC had registered its lowest daily outflow since its launch day, amounting to $192 million yesterday.<\/p>\n
\nBitcoin ETF Flow – Day 12<\/p>\n
GBTC flow data out<\/p>\n
$192m outflow<\/p>\n
\u2014 BitMEX Research (@BitMEXResearch) January 29, 2024<\/a><\/p><\/blockquote>\n
This declining trend in outflows signals a reduction in selling pressure in the Bitcoin market, contributing to the cryptocurrency’s price recovery.<\/p>\n
Adding to the positive sentiment, Glassnode co-founders Jan Happel and Yann Allemann, known as Negentropic on X, have recently noted that Bitcoin’s recent rise above $42,200 has created substantial liquidity for long positions<\/a>.<\/p>\n
This situation suggests that Bitcoin is filling the liquidity void<\/a> above the $42,000 mark, which could lead to volatility and market shifts. Negentropic points out that approximately $659 million in liquidations have already occurred.<\/p>\n