- Bitcoin’s recent rally is raising optimism as a major whale injects $3.22 billion into the market.
- New Bitcoin ETFs attracted $340 million, signaling continued interest despite outflows.
Bitcoin in recent days [BTC] has sparked significant optimism within the cryptocurrency community, thanks to its impressive rally. This upward trend has not only increased confidence but also brought a wave of new liquidity to the market.
In particular, large addresses, often referred to as “whales” in the crypto world, have re-entered the scene and injected significant amounts of money into the market.
Whales come in
In the last 26 hours alone, a prominent whale received a remarkable infusion of 148.5 million USDT from TetherTreasury, sending this money to several exchanges.
Interestingly, this is not an isolated event as the whale has been actively contributing to the liquidity of the crypto market, injecting a significant USDT 3.22 billion since October 20, 2023.
The whale’s active participation can serve as a confidence booster for both retail and institutional investors, indicating that influential players may be willing to re-enter the market and accumulate more BTC.
Source:
Impact of ETFs
Additionally, other factors that could impact liquidity would be the new spot ETFs.
According to Crypto Quant analyst Cristian Palusci, the latest trading session saw new Bitcoin ETFs attract inflows totaling $340 million, despite outflows of around $160 million from the Grayscale Bitcoin Trust and Invesco Galaxy.
The day before, there was a price increase ahead of the US trading session, followed by a mostly sideways move.
It appears that traders may be trying to anticipate the buying pressure during the Wall Street session, with ETFs consistently withdrawing BTC from the market at a pace reminiscent of an industrial vacuum cleaner.
After the $50,000 breakout, it becomes uncertain how much further Bitcoin can advance without a correction.
Nevertheless, a significant decline in Bitcoin’s value seems unlikely if the trend of daily net inflows between $300 and $500 million continues, especially given that the BTC in question will remain out of the market for an extended period of time.
Read Bitcoin’s [BTC] Price forecast 2024-25
This scenario is closely aligned with the upcoming halving, which could cause a massive supply crisis.
Source: Cryptoquant
At the time of writing, BTC was trading at $52,246.32 and had grown 1.52% over the past 24 hours. The total number of holders remained the same during this period. This suggested that they were old holders who continued to accumulate Bitcoin.
Source: Santiment