Bitcoin has recently experienced a surge in demand, driving its price to a ten-week high above $67,000. This increase in demand, which amounted to 177,000 BTC last week, is the largest seen since April. As a result, Bitcoin’s price rose by over 5% to reach $67,800. This spike in activity has brought renewed optimism to investors who have been witnessing sluggish performance in the market since May.
The rise in Bitcoin’s price can be attributed to a variety of factors, including strong institutional interest, increased activity by large-scale investors (whales), and favorable seasonal trends. Institutional interest has been particularly high, with spot ETFs in the US purchasing nearly 8,000 Bitcoin, marking the highest daily purchase since July 21. These institutional buy-ins have played a significant role in driving Bitcoin’s price momentum.
Whales, which refer to large-scale investors, have also been accumulating Bitcoin steadily. The total balance of Bitcoin held by whales, excluding exchanges and mining pools, has reached 670,000 BTC. This accumulation trend, which has been ongoing for the past year and is currently above the 365-day moving average, indicates strong confidence among large investors in Bitcoin’s long-term price growth.
Bitcoin’s recent rally is occurring during what is historically a period of strong seasonal performance for the cryptocurrency. The fourth quarter, especially in a halving year, has traditionally been favorable for Bitcoin’s price. In previous halving years, such as 2012, 2016, and 2020, Bitcoin prices saw significant increases in Q4. This year seems to be following a similar trajectory, with Bitcoin demonstrating a bullish trend that aligns with past cycles.
Overall, Bitcoin’s recent rally has reignited interest in the broader crypto market, with other digital assets also experiencing gains. The combination of factors, including institutional interest, whale accumulation, and favorable seasonal trends, could continue to support Bitcoin’s upward trajectory in the weeks to come.
As of the most recent data available on Oct. 16, 2024, Bitcoin is ranked #1 by market cap, with a market capitalization of $1.34 trillion and a 24-hour trading volume of $43.92 billion. The total crypto market is valued at $2.32 trillion, with a 24-hour volume of $92.3 billion, and Bitcoin dominance is currently at 57.68%.
