- Bitcoin has seen increased interest from whales who are accumulating heavily ahead of a few possible bull run triggers.
- Bitcoin needs to find support above $55,000 before climbing above $60,000 and breaking its all-time high of $65,000.
Bitcoin has in the last few days set a new 5 month high as it climbed above $55,000. At the time of press, the digital asset is exchanging for $56,800 according to our data. This marks a 20 percent price surge in the last 7 days. Investors are now eyeing the $60K high as the asset slowly approaches the $65,000 all-time high set early in the year. The price resurgence has in part been driven by whales and institutions which have been accumulating heavily over the past few weeks.
According to data from Santiment, in recent weeks, whales have begun accumulating heavily. The research and analysis firm noted that whales now account for 21.3 percent of the total Bitcoin supply, the highest level in Bitcoin’s history. Demand from whales generally strengthens Bitcoin’s position as they ensure demand is high and exchange demand falls. Furthermore, they are viewed as long term holders and unshaken by market volatility leading to price stability. There has also been a notable resurgence in Bitcoin products from institutions. With whales and institutions at the driver seat, retail investors have also been accumulating motivated by fear of missing out (FOMO).
What’s driving the Bitcoin (BTC) interest?
The interest comes as no surprise following a number of positive developments in the last few weeks. One of the most critical ones is the ongoing talk about a Bitcoin ETF approval this month. Analysts predict that chances of a Bitcoin ETF approval by the SEC this month are extremely high. In fact, just a few days ago, the SEC approved a Bitcoin investment ETF.
On the SEC’s table are three Bitcoin ETF applications which the watchdog has to make a decision about before the end of the month. If any of them is approved, this could open the floodgates for Wallstreet investors to invest in Bitcoin.
The Fed Chair Jerome Powell and the SEC boss Gary Gensler have recently confirmed that the government has no intention of placing a blanket ban on cryptocurrencies like China. A number of politicians have also made positive remarks, affirming the need for the U.S to keep up with new technology and adopting blockchain and cryptocurrency technology to stay ahead of the U.S.
Additionally, institutional investors are increasingly preferring Bitcoin to gold. There is concern about inflation but unlike in the past where institutions rushed to gold, JPMorgan notes that investors are increasingly preferring Bitcoin to gold. The financial giant notes that since the start of the year, $10 billion from gold Exchange Traded Funds (ETFs) has been withdrawn, some of this is already invested in Bitcoin or will find its way there in the coming weeks.
Bitcoin fundamentals are also looking strong according to fresh data. For instance, the network hash rate which was struggling has recovered. Analyst Kevin Rooke recently noted Bitcoin handled over $31 billion of value blockchain indicating mass adoption.
As CNF has reported, a number of prominent analysts expect Bitcoin to end the year trading in the $100,000 region.