As a seasoned researcher with over two decades of experience in analyzing financial markets and trends, I have witnessed the ebb and flow of various investment landscapes. The surge in Bitcoin’s price today is indeed an intriguing development, especially considering the historical data that shows August and September as challenging months for the crypto industry post-halving events.
As an analyst, I observed a significant 4% increase in Bitcoin‘s price within the past 24 hours, peaking at approximately $61,361 on August 20th. This robust recovery from the critical support level of around $58k has diminished the widespread apprehension about potential crypto market collapse. However, it’s essential to note that historical trends suggest that the crypto sector, particularly Bitcoin, tends to struggle during August and September, more so after halvings.
As a crypto investor, I’ve noticed a positive shift in Bitcoin’s Fear & Greed Index, moving up from 28% to approximately 30%. This increase suggests that the fear of a continued selloff is diminishing, which aligns with the ongoing crypto market recovery.
Top Reasons Why Bitcoin Price Surged Today
Bitcoin, being a globally traded digital currency, has seen considerable growth due to questionable monetary decisions worldwide, frequently resulting in high inflation rates. Notably, Bitcoin stands out as a deflationary financial asset, with built-in mechanisms like halving events that occur approximately every four years.
As a researcher, I’ve observed an interesting correlation between Bitcoin prices and major global stock indexes. A notable example is the August 5 crash that affected nearly every financial sector. Today, it appears that Japan’s Nikkei 225 is spearheading other significant stock indexes in a bullish rebound. This trend might also be influenced by Gold’s ongoing bullish surge.
Consequently, it’s thought that the cryptocurrency market would likely mirror the uptrend observed in stocks and gold.
Today’s surge in cryptocurrency prices was significantly boosted by a substantial increase in interest from institutional investors. As reported by Santiment, large Bitcoin holders (whales) with 100 to 1,000 coins have purchased approximately 94,700 more Bitcoins over the past six weeks, now controlling over 3.9 million units.
š³ Over the past six weeks, Bitcoin’s major investors, or wallets containing between 100 to 1,000 coins, have increased their holdings by approximately 94,700 more coins. With price volatility causing some traders to exit the crypto market, it appears that influential players are taking advantage of this situation and amassing more Bitcoin.
ā Santiment (@santimentfeed) August 19, 2024
As a crypto investor, I’m thrilled to share that Metaplanet Inc., based in Tokyo (ticker: 3350), recently announced the completion of acquiring 57.273 Bitcoins, valued at approximately $3.4 million. This means they now possess around 360,368 Bitcoin units.
A different whale was spottedĀ making a purchase of 347 Bitcoins from Binance, worth over $16 million, and currently 1,953 BTC units.
As an analyst, I’m observing a significant development: The U.S. spot Bitcoin Exchange-Traded Funds (ETFs) are experiencing a substantial net cash influx totaling approximately $125 million. Notably, this surge is being spearheaded by Fidelity’s Bitcoin ETF offering, FBTC.
Midterm BTC Price Prediction
Even though Bitcoin’s price has bounced back over $60k today, it’s still not clear sailing yet. From a technical perspective, for the main cryptocurrency to suggest that any potential downward trend has been negated, it needs to consistently finish trading above both its 50-day and 200-day Moving Averages. This is essential because these averages recently experienced what’s known as a “death cross,” which could potentially indicate further price corrections.
I still think #BTC dominance will go higher from here.
As a researcher examining ALT/BTC pairings, I believe that based on current trends, we should expect these pairings to drop down towards the lower end of their established ranges, if not lower, in my opinion.
ā Benjamin Cowen (@intocryptoverse) August 19, 2024
As per well-respected cryptocurrency analyst Benjamin Cowen’s predictions, Bitcoin’s influence over the altcoin market is expected to grow significantly in the short term, potentially reaching approximately 60%. This could mean that Bitcoin’s price will continue to steer the altcoin sector in a positive direction, and there’s a possibility it may even hit its record high once more within this timeframe.
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2024-08-20 15:19