Bitcoin Value Surpasses $45,000, Juiced by Miner Holdings and Whale Accumulation
Summary:
Bitcoin's value exceeded $45,000, its first major leap since January 12. The rise, which represents an increase of over 5.36% in a single day, is attributed to several factors, including enhanced miner reserve holdings and an upsurge in Bitcoin's whale accumulation. Risks assets like Bitcoin and cryptocurrencies gained momentum due to the favorable performance of the U.S. stock markets. With trading, investment, and market correlations revolving around expectations on interest rates, Bitcoin's surge also resulted in significant short liquidations for leveraged positions in the crypto market.
The value of Bitcoin (BTC) soared past $45,000, marking its first significant gain since January 12, a day following the commencement of spot ETFs trading. Cointelegraph Markets Pro and TradingView data reveals a growth surpassing 5.36% in the past day, with BTC reaching a month-long peak of $45,522. Let’s delve into the undercurrents nudging Bitcoin's value today.
According to recent observations from Bitfinex, Bitcoin faced headwinds in the past four weeks due to amplified miner reserve outflows. Miners were either liquidating their Bitcoin assets or using them as leverage for raising funds before the anticipated halving event that could potentially shrink their revenue. CryptoQuant, in its weekly review, stated that this selling pressure ebbs as miners choose to retain their reserves despite falling Bitcoin network fee profits.
At the same time, there's been notable whale accumulation for BTC. Glassnode data illustrates a rise of 3.6% in Bitcoin wallets containing 1,000 BTC or more, moving from 1,992 wallets on January 19 to 2,064 wallets on February 6. Market intelligence firm Santiment presents additional data showing a surge in daily active addresses (DAA) from 760,450 on January 21 to more than 907,040 by February 7.
Since October, the U.S. stock markets have matched stride, honing a backing for volatile assets like Bitcoin and other cryptocurrencies. Mainstream stock indices on Wall Street have experienced a surge in recent days, with the S&P marking a record-breaking high of $4,995 on Wednesday, February 7. On the same day, the Dow Jones Industrial Average was within close reach of its record high as it ascended by 0.40%, closing at 38,677.36. The Nasdaq also witnessed a growth of 40.0 points, or 0.23%, hours after the trading bell on Wall Street on February 8, touching a record high of 17,796.
This upturn in Bitcoin's price corresponds with BTC's increasing correlation with the U.S. stock trends. The market's expectations on interest rates are also evolving. The announcement from the first U.S. Federal Open Market Committee (FOMC) meeting this year on January 30 rejected the likelihood of an interest rate cut in March, primarily due to a strengthening labor market.
Bitcoin’s ascent over the $45,000 threshold brought about a wave of liquidations for Bitcoin leveraged positions. Fahad Faqeeh, the founder of HZM Coin, highlighted that Bitcoin's growth past the $45,000 mark sparked "a surge in short liquidations of approximately $115 million within the last day.” Meanwhile, CoinGlass data displays that BTC short-position liquidations stood at $22.7 million for the day and continues to grow as Bitcoin's price escalates. The entire crypto market witnessed short liquidations exceeding $122.7 million.
This article does not provide investment guidance or suggestions. Each investment or trading action carries inherent risks, and readers should therefore conduct thorough research when making decisions.
Published At
2/8/2024 10:29:50 PM
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