Bitcoin has seen its ups and downs lately, but it’s back over the $60,000 mark, and that’s got everyone talking. After a few days of uncertainty, Bitcoin jumped past this key level, giving us all a bit of a breather. If you’re holding BTC or thinking about it, there are some interesting things happening right now.
What’s Been Happening with Bitcoin?
Let’s rewind a bit. Bitcoin hasn’t had the smoothest ride recently. There was a lot of worry in the market, especially with concerns about a possible U.S. recession after some disappointing job reports. Last Monday, the situation wasn’t looking great when the Japanese stock market took a hit, dragging Bitcoin down by 20% along with it.
But just when things looked bleak, Bitcoin started to claw its way back. By Thursday night, it had bounced back to $62,500. The weekend saw a slight dip again, and by Sunday, we were back under $59,000, and even under $58,000 for a short moment. Still, the bulls didn’t back down, and soon enough, we saw Bitcoin climbing past $60,000, even reaching $61,000. At the time of writing Bitcoin is moving hands at $60,883 according to CoinMarketCap data, good for an over 3% gain in the past 24 hour.
Investors Aren’t Backing Down
You might think that with all this volatility, Bitcoin holders would be nervous, maybe even selling off their coins. But interestingly, the opposite is happening. More and more investors are holding onto their Bitcoin, and some are even adding to their stash.
According to crypto analysis firm Glassnode, there’s been a noticeable shift towards holding rather than selling. They’ve observed what they call an Accumulation Trend Score. Basically, it measures how much Bitcoin is being scooped up by big players in the market, something we reported on last week when we saw big whales continuing to buy more Bitcoin. Right now, it’s at its highest point, which means these large investors are buying up Bitcoin and holding onto it.
Long-term holders—those who’ve had their Bitcoin for more than five months—are also getting in on the action. Over the last three months, these folks have added around 374,000 Bitcoins to their wallets. This is quite a turnaround because, not too long ago, they were selling off a lot of Bitcoin when prices were on the rise.
Bitcoin ETFs Are Buying
In addition, in the first two days of the week Bitcoin ETFs in the U.S. saw strong inflows, with $38.94 million added on Tuesday, a 40% increase from Monday’s $27.87 million. The funds now hold $55.34 billion in total assets, which is about 4.63% of Bitcoin’s market capitalization. BlackRock’s IBIT fund led the inflows with $34.55 million, while Grayscale’s GBTC fund saw significant outflows, losing $28.65 million. Other funds like Fidelity’s FBTC and Bitwise also saw gains, but ARK Invest and 21Shares’ ARKB fund experienced a small outflow of $6.06 million on Tuesday.
What Does This Mean for You?
So, what should you take away from all this? Well, the fact that both big players and long-term holders are accumulating Bitcoin suggests that there’s a growing belief that Bitcoin might be gearing up for another run (According to popular analyst PlanB, the creator of the Stock-to-Flow model, we are still in a bull run). The recent dip and quick recovery could be a sign of more stability to come therefore.
If you’re holding Bitcoin, this could be reassuring news. If you’re considering buying, the current sentiment among large investors might give you some confidence. Of course, as always with crypto, nothing is set in stone. But right now, it seems like there’s a good deal of optimism in the air.
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