Bitcoin is back above $44,000 for the first time since the Spot Bitcoin ETFs were approved for trading in January. This price increase is believed to be due to several factors that have played in favor of the bulls in recent times.
BTC whales collect more Bitcoin
Citing data from Glassnode, crypto analyst Ali Martinez revealed Recently, Bitcoin whales have been accumulating more BTC, with approximately 73 new addresses now holding 1,000 BTC or more. This figure would represent an increase of 3.66% over the past two weeks, continuing the accumulation trend.
NewsBTC had Previously reported how Bitcoin whales went on a buying spree following Bitcoin’s drop below $40,000. The flagship crypto token is believed to have fallen to that level due to the significant selling pressure from Grayscalethe issuer of the GBTC Spot Bitcoin ETF.
However, the asset manager has cooled off recently following the BTC sell-off as outflows from the fund continue to decline. This is another factor that could have contributed to Bitcoin’s recent price rise. Data from on-chain analytics platform Arkham Intelligence shows that other whales like this too FTX and Alameda Research have also relaxed the offloading of their crypto tokens.
Discover Bitcoin ETFs that are doing their part
There has been increased institutional demand for Bitcoin thanks to the Spot Bitcoin ETFs. This is evident from the success these funds have achieved since their launch. As a result, the issuers of these funds, such as the the world’s largest asset manager, BlackRockhave had to accumulate a significant amount of Bitcoin.
Recently these asset managers were reported to own more than 657,000 BTC, accounting for more than 3% of Bitcoin’s circulating supply. The newly noted Discover Bitcoin ETFs (excluding grayscale) alone owns approximately 187,000 BTC. Interestingly, these funds are well on their way Surpass MicroStrategywhich has a BTC share of 190,000.
In the meantime, explore Bitcoin ETFs could start soon in Hong Kong, where ten applications have already been submitted to the country’s financial regulators. This is another story that could be driving Bitcoin’s current price rise. seeing the impact that the approval rumors in the US had over the price of Bitcoin late last year.
Hong Kong is not the only country in Asia showing crypto enthusiasm like Thailand recently reported to have abolished VAT (value added tax) on crypto trading.
At the time of writing, Bitcoin was trading around $44,800, up more than 4.4% in the past 24 hours, according to data from CoinMarketCap.
BTC recovers to $44,800 | Source: BTCUSD on Tradingview.com
Featured image from Medium, chart from Tradingview.com
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