Bitcoin shows a sudden vigor by surpassing the $47,000 mark after a week of stagnation. This surge, up by 4.5% in 24 hours, brings the cryptocurrency back towards the resistance encountered during the launch of Bitcoin spot ETFs in the United States. With signs of slowing Grayscale outflows and minor sales, the path seems clearer towards the $50,000 mark.
Trillion dollar market cap soon ?
Bitcoin Returns to Surf Above $47,000
After a week of lethargy, the price of Bitcoin has abruptly awakened to surpass $47,000, recording a 4.5% increase in the last 24 hours. It’s worth noting that most of the highest capitalized altcoins are still lagging behind, with only 1 or 2% progress over the same duration.
With a return above $47,000, Bitcoin is retesting the resistance it encountered during the launch of spot ETFs in the US market on January 11th. At that time, its price had dropped by nearly $5,000 in 24 hours before oscillating around $42,700.
Since their launch, Bitcoin spot ETFs have attracted over $8 billion in capital, while Grayscale has seen $6 billion leaving its famous GBTC. This is indeed an encouraging sign for a new Bitcoin surge: while Grayscale was heavily selling Bitcoin daily in response to these outflows, they now seem to be dwindling and represent less than $100 million per day, compared to almost $700 million at the beginning.
Next, we can observe that the proportion of Bitcoins sold by miners in recent days has significantly decreased. As CryptoQuant highlighted in a recent report, daily Bitcoin miner sales have dropped from 800 BTC during the months of November and December to 300 today.
The convergence of these events thus prepares a favorable ground for a potential rise towards $50,000, as noted by our analyst Tagado this morning. It is also worth noting that even though activity on the Bitcoin network has considerably reduced (due to enrollments) and thus miner revenues have also decreased simultaneously, miners seem to prefer holding onto their BTC.
👉 Also in the news – Ethereum: Franklin Templeton applies for an ETH spot ETF
While the number of transactions on Bitcoin reached a peak of over 731,000 on December 31, 2023, this number has fallen below 300,000 for several days now.
On the liquidation front, $137 million worth of positions were cleared in the last 24 hours, according to Coinglass data.
Bitcoin’s recent surge coincided with the new record set by the S&P 500, which surpassed 5,000 points for the very first time.
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