Bitcoin (BTC) Price Attempts Bullish Breakout Catalyzed by Rising Demand from Whale Investors

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As a seasoned crypto investor with over a decade of experience in this wild and unpredictable market, I must say that the current state of Bitcoin leaves me both exhilarated and cautiously optimistic. The price surge to around $101K within a day is reminiscent of the early days of the 2017 bull run, but with a more solid foundation beneath it.

Bitcoin’s price increased by more than 5% over the last 24 hours, reaching approximately $101,000 on Thursday, December 12, during the mid-London trading session. This surge brought the digital coin close to retesting its highest daily closing point of around $101,961, suggesting a possible bullish breakout that could lead to a new all-time high in the near future.

Furthermore, Bitcoin’s price has built up a strong upward trend since the start of the year, which could lead to a steep climb in the upcoming months. Moreover, Bitcoin appears to be in its price exploration stage, indicating that the bullish sentiment is dominating the market.

If a bullish breakout occurs, various strategies have been proposed to forecast a possible peak over the next few months. Notably, the key factor is that fear-of-missing-out (FOMO) traders will probably keep speculating until the Trump administration implements its proposed Bitcoin reserve, as stated during their campaign.

Bitcoin Whales Continue to Make Huge Moves

Based on data analysis from Coinglass, it appears that the amount of Bitcoin stored on centralized exchanges has significantly decreased over the past year, likely due to the optimistic market sentiment. In the last month alone, this figure dropped by approximately 120,000 units, reaching roughly 2.23 million. The majority of this decrease can be attributed to Coinbase Pro.

The significant decrease in the availability of Bitcoins on centralized exchanges suggests that many investors are optimistic about its future growth, even during this intermediate phase of consolidation. As shown by market data from CryptoQuant, Bitcoin investment products have been drawing an average of $80 billion each month over the past year, which outperforms the cumulative cash influx seen in the previous 15 years.

#Bitcoin is attracting $80 billion every month.

Approximately half of all the money invested in the Bitcoin market during the last fifteen years was poured in this current year.

If you don’t understand what this means, you still don’t understand Bitcoin.

— Ki Young Ju (@ki_young_ju) December 12, 2024

For the last ten straight days, U.S. Bitcoin ETFs have seen a combined cash inflow exceeding $4.2 billion. Notably, institutions like BlackRock’s IBIT and Fidelity’s FBTC have been significant investors in Bitcoin, accounting for a large portion of the $34.5 billion in total net inflows since the U.S. Securities and Exchange Commission’s historic approval.

Market Picture

Institutional investment in Bitcoin is predicted to stay strong as countries are preparing to incorporate Bitcoin into their strategic reserve plans. Moreover, high-ranking U.S. figures view Bitcoin as a form of digital gold, which could provide more nations with an opportunity to settle national debts over time.

Significantly, BlackRock’s IBIT (Index Bond Investment Trust) has surpassed the market value of its gold ETF within just a year after launch, suggesting strong institutional investor interest.

In the current market situation, known as “altseason,” Bitcoin’s influence over the crypto market has been decreasing, allowing alternative coins like Ethereum (ETH) to gain prominence. Additionally, there’s a growing trend of traders fearing they’ll miss out (FOMO) on a potential sharp increase in the value of altcoins, leading them to invest in these digital assets.

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2024-12-12 13:09