Bitcoin’s price surged past $65,000 earlier this week, driven by strong inflows into spot Bitcoin ETFs and aggressive buying by institutional players and BTC whales during early July’s BTC correction.
Surge in Weekly Bitcoin Inflows
CryptoQuant CEO Ki Young Ju highlighted a notable shift in Bitcoin trading dynamics, noting that over-the-counter (OTC) markets have outpaced centralized exchange markets. According to Ju, whale holdings with more than 1,000 BTC, including custodial wallets and spot Bitcoin ETFs, have accumulated 1.45 million BTC this year, raising the total holdings to over 1.8 million BTC.
In contrast, during the 2021 bull run, only 70,000 Bitcoins flowed in throughout the year. The current 100K weekly inflows in 2024 could be setting the foundation for the next bull run.
Ju clarified that these inflows are not merely internal transfers from existing custodial wallets. “The balance of old whale wallets (over 155 days) hasn’t decreased, while the balance of new whale wallets (under 155 days) has increased,” Ju explained.
BTC Price Trends
Bitcoin’s price has seen significant gains, increasing by over 20% from the lows of $53,500 in the past two weeks. Despite its surge to $65,500 this week, Bitcoin is experiencing a slight retracement, currently trading at $64,581, down 1.5%, with a market cap of $1.274 trillion.
Popular crypto analyst Peter Brandt noted that Bitcoin’s price chart continues to form lower highs and lower lows. “While I am impressed by the current bounce in Bitcoin, it should be noted that the sequence of lower highs and lower lows continues despite the halving, despite the ETF, despite the hype,” Brandt said. Additionally, the recent Mt. Gox redistribution has contributed to BTC price volatility.
On-chain College suggests that the recent dip below the BTC Momentum indicator is intended to shake out less committed investors, reset sentiment, and prepare for the next rally.
The Bitcoin market continues to display dynamic movements, hinting at the potential for significant upward trends.
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