Bitcoin Surpassed the $45,000 Mark
Bitcoin approached the $45,000 mark for the first time in a month, and here are a few reasons why.
The last time Bitcoin traded above the $45,000 mark was the day after the Bitcoin ETF was approved. The price of Bitcoin was at $49,000 at the time of the ETF's approval, but quickly fell to $39,000 as the launch of the new investment instruments became a "sell the news" event. In the last 24 hours, the major cryptocurrency has risen 4% to $45,002 at the time of writing.
Source and Copyright © TradingView
The reason for Bitcoin's growth is attributed to the constant inflow of cash from investors on ETFs. The outflow of funds from Grayscale has finally decreased, which also points to the growth of the main cryptocurrency. Spot Bitcoin ETFs have seen net inflows for nine consecutive days, with more than $20 billion in invested capital. In addition, risk appetite among retail investors is on the rise. Experts are warning of an impending rally ahead of Bitcoin's halving. Many are betting on Bitcoin hitting the $50,000 mark.
Another reason for Bitcoin's rise is the behavior of whales. Glassnode data showed that an increasing number of Bitcoin whales continue to accumulate assets: about 73 new addresses now own 1,000 BTC or above.
#Bitcoin whales are accumulating more $BTC! Around 73 new whales now hold 1,000 #BTC or more, marking a 3.66% increase in two weeks. pic.twitter.com/VFArJYTQZl
— Ali (@ali_charts) February 7, 2024
Rumors of an imminent Hong Kong Bitcoin ETFs have also contributed to Bitcoin's recent rise.
Bitcoin is currently trading at a key resistance level of $45,000. The next important level is at $45,750. An upward movement could send the price towards $46,500, $47,200 and $48,500. On the negative side, Bitcoin could start falling to support levels of $44,300, $43,750 and $43,000.
This is not a 100 percent statement. The cryptocurrency market is very volatile and unpredictable. Investors should exercise caution and do their own research.
