In a significant move, Bitcoin (BTC) crossed the $44K mark, reaching its highest point since January 12, the day after the debut of spot bitcoin exchange-traded funds (ETF) in the U.S. The cryptocurrency surged from $42,700 to as high as $44,300, signaling a fresh four-week high and reflecting increased accumulation by large holders.
Observations from market analysts point to a noteworthy trend as Bitcoin addresses holding over 1,000 BTC experienced significant growth in the past two weeks. According to crypto analyst Ali Martinez, the number of wallets holding over 1,000 tokens, valued at roughly $44 million, reached a multi-month high of 73, showcasing a 3.66% increase in just two weeks.
BTC’s 2.5% surge over the past 24 hours outpaced the CoinDesk 20’s 1.6% gain, indicating strong momentum. While Bitcoin led the way, Ether (ETH) also saw positive movement, gaining 2.3%, while Cardano (ADA) lagged with a 0.4% decline.
Market analysts from Bitfinex suggested that increased selling by miners may have previously pressured BTC prices, but recent dynamics appear to have shifted in favour of buyers. Ethereum’s native cryptocurrency, Ether (ETH), broke above $2,400 for the first time in two weeks, fueled by renewed optimism surrounding spot ETFs. Asset managers Ark Invest and 21Shares amended their joint application, aligning it more closely with approved spot bitcoin ETFs. The updated filing also opened the possibility of staking some of the fund’s tokens to earn rewards.
BTC Breaks Four-Week High Following Spot ETF Debut
In a noteworthy development, Bitcoin (BTC) crossed the $44K mark, marking its highest point in four weeks since the inception of spot bitcoin exchange-traded funds (ETF) on Jan. 12. The cryptocurrency experienced a 2.5% increase in the past 24 hours, outpacing the CoinDesk 20’s 1.6% gain over the same period. Other major cryptocurrencies, such as Ether (ETH), also demonstrated positive movement, rising by 2.3%.
Analyst Highlights Significant Growth in Large Bitcoin Addresses
Analysts observed a substantial increase in Bitcoin addresses holding over 1,000 BTC, indicating heightened accumulation by large investors. The number of wallets with over 1,000 tokens, equivalent to roughly $44 million, reached a multi-month high of 73, according to data from Glassnode, as noted by crypto analyst Ali Martinez.
Market Dynamics and U.S. Equity Indices Influence
Bitfinex analysts suggested that increased selling by miners may have previously pressured BTC prices, but a reversal occurred as bitcoin whales increased their asset accumulation. Additionally, the positive momentum in U.S. equity markets, with the S&P 500 closing at a record high and the Dow Jones Industrial Average nearing its all-time high, likely supported risk assets like cryptocurrencies.
Altcoins Respond to ETF Optimism
Ethereum’s native cryptocurrency, Ether (ETH), surged above $2,400 for the first time in two weeks, fueled by renewed optimism surrounding spot ETFs. Asset managers Ark Invest and 21Shares amended their joint application, aligning it more closely with approved spot bitcoin ETFs. This move potentially aims to appease regulators and open the door for the staking of fund tokens to earn rewards.
Positive Market Sentiment Prevails
The cryptocurrency market experienced a notable upswing, led by the fact that Bitcoin (BTC) crossed the $44K mark. The increased accumulation by large investors and positive signals from U.S. equity markets contributed to the overall positive sentiment. Altcoins, particularly Ether and associated tokens, responded favourably to the optimism surrounding spot ETFs. As the market remains dynamic, investors are closely watching these developments for potential opportunities.
Also Read: Monero Rebounds: Registers Impressive 23% Gain in Recent Rebound.
