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Beyond $60,000 for Bitcoin: New Factors for Continued Bullish Enthusiasm

The main digital currency Bitcoin (BTC) has risen dramatically over the past few weeks, reaching $59,000 for the first time since November 2021. Its market value has surpassed $1.15 trillion with a daily trading volume of $45 billion.

This rise is due to several factors, the most important of which are increased short-term investor activity, the launch of new Bitcoin ETFs, and improvements in overall market sentiment.

Activity of short-term speculators

According to Glassnode Reporta blockchain analytics company, short-term investors have seen a record volume of deposits into centralized cryptocurrency trading platforms.

Daily deposit volume has exceeded $2 billion since mid-January, reaching $2.46 billion at its peak.

The report indicates that the total volume of deposits and withdrawals continues to increase, reaching 5.57 billion US dollars per day in and out of exchanges. This is due to the large unrealized gains recorded by investors in Bitcoin since November 2022.

This increased activity is attributed to two main factors.

The first is the rise in Bitcoin prices: it has attracted investors to buy the digital currency, in the hope of making quick profits.

“The extent of speculation in the current market can also be seen by the exceptional dominance of FX inflows and outflows relative to the total on-chain volume,” Glassnode’s report said.

Bitcoin flows to trading platforms
Bitcoin flows to trading platforms

Data indicates that 78% of transaction volume on blockchain is transferred to and from trading platforms. This indicates a high level of speculation in the market.

The second reason that led to the first was the launch of new Bitcoin ETFs: these funds allowed institutional investors to invest in Bitcoin through their traditional channels. Resulting in increase in requests On digital currency.

New Bitcoin ETFs have played a significant role in the price rally. These funds attracted approximately 90,000 BTC in net inflows.

The report indicates that these ETFs can This opened the door to more investment Institutionalization in Bitcoin. Which could lead to increased demand for digital currency in the long term.

Increased investor enthusiasm and expectations of new records

According to Santiment data, Bitcoin investors have shown increasing enthusiasm on social media, discussing the currency's bullish momentum.

The volume of interaction on social media platforms has increased approximately BTC currency 131% since February 24.

Data shows that most conversations include terms like “$60,000,” “all-time high,” and “bullish.” This shows that some investors are expecting new records for the leading digital currency.

After the price surge from the $50,000 level, Bitcoin whale activity also saw a notable increase.

The number of transactions worth at least $100,000 increased from BTC From 8,267 to 16,885 unique transactions per day since February 24.

High volatility is generally expected when whale activity increases rapidly.

Technically, Bitcoin's Relative Strength Index (RSI) currently stands at 80. This indicator indicates that the leading digital currency is currently experiencing high volatility due to greedy market conditions.

It is difficult to accurately predict what the coming days hold for Bitcoin. However, current indicators suggest that the cryptocurrency could continue to rise, with the possibility of reaching new highs.

Of confidence


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