Bitcoin (BTC) has surged above $70,000, climbing more than 5% in the past 24 hours. This significant Bitcoin price increase has sparked interest and curiosity within the market, seeking to understand the underlying factors driving this upward momentum.
New Whales Drive Bitcoin Accumulation Trend
Since January, the realized capitalization for new whales has been on a steady rise. Realized capitalization, calculated based on the price at which each BTC was last bought or moved, shows how much money has been invested in Bitcoin. The increase in the realized cap for new whales indicates active accumulation by these large investors.
In contrast, the realized cap for old whales has remained relatively stable. This stability suggests that long-term investors are holding onto their Bitcoin. This holding behavior by old whales underscores their confidence in Bitcoin’s future value.
The gradual growth in the realized cap for addresses holding over 10,000 BTC reflects slow but steady accumulation by the largest Bitcoin holders. This trend indicates that even the biggest investors are gradually increasing their Bitcoin positions.
This accumulation by the largest holders is a positive signal for the market. Major investors continue to be interested in and confident in Bitcoin.
Unrealized BTC Profits Show Significant Gains
Unrealized profit and loss reflect the potential gains or losses if holders were to sell their BTC at the current market price. Since the beginning of the year, unrealized profit has been steadily increasing, peaking around mid-March. This increase indicates that large holders have seen significant potential gains.
The profit levels for new whales have been more volatile than for old whales and large holders. While old whales and the largest holders show stable and substantial unrealized profits, new whales display more volatility but are still in profit. This volatility among new whales highlights the dynamic nature of new investors in the market.
Bitcoin’s 51% year-to-date gain reflects investors’ anticipation of U.S. monetary expansion. In April 2024, the M2 monetary base surpassed $21.0 trillion. This increase in circulating money hints at rising inflationary pressures despite a period of spending hesitancy by companies and individuals.
The United States Federal Reserve’s strategies to manage inflation and avoid a recession could impact liquidity. Consequently, this could affect the attractiveness of scarce assets like Bitcoin. Investors are closely watching the Federal Reserve’s actions, as these could have significant implications for Bitcoin’s future value.
Also Read: Ethereum Is Top Trending Asset Amid SEC ETH ETF Buzz and $341M Whale Buys
The post Bitcoin (BTC) Price Breaks $70K Barrier: New Whales and Market Trends to Watch appeared first on CoinGape.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed