Whale Purchases Propel Bitcoin to New Highs in Two Days

Bitcoin Leads a General Rebound, Whale Activity Ignites a Rally

The cryptocurrency market witnessed a dramatic turnaround, with Bitcoin (BTC) spearheading a resurgence that reverberated through the altcoin ecosystem. After a bearish start to the week, Bitcoin rallied approximately 2% over the past 24 hours, climbing to a daily high of around $57,267. This uptrend has boosted the total crypto market cap by about 3%, accumulating to $2.1 trillion during the early European trading session on Wednesday.

Bitcoin’s Comeback Amid Global Market Trends

Notably, Bitcoin’s rebound parallels a broader recovery in major global stock indexes, illustrating how intertwined digital currencies have become with traditional financial markets. Adding to the market’s upward momentum, the United States is set to commence its treasury buyback operations today, with plans to inject approximately $50 billion into the economy over the coming weeks.

Bitcoin Whales Seize the Opportunity

In the midst of this rally, Bitcoin whales have been particularly active, exemplifying their influential role in the market. On-chain data from Santiment reveals that whales gobbled up over 30,000 BTC units, equivalent to approximately $1.62 billion, within the last 48 hours. This aggressive buying spree has significantly reduced the Bitcoin supply on centralized exchanges, potentially setting the stage for further price hikes.

Moreover, the sentiment in the crypto market has evolved notably. The fear and greed index plummeted below 20%, signaling extreme fear among investors. Despite the evident volatility, long-term Bitcoin holders have remained undeterred, embracing the opportunity to accumulate more of the flagship cryptocurrency.

Mixed Performance Among US Spot Bitcoin ETFs

While the market exhibits a bullish tilt, US spot Bitcoin ETFs have not fared as well in recent days. Over the past three days, these financial instruments experienced considerable redemptions. On Tuesday alone, the net cash outflow from US spot Bitcoin ETFs surged to roughly $148 million, prominently led by Fidelity’s FBTC and Grayscale’s GBTC.

This divergence between Bitcoin’s direct trading activity and its ETFs shines a light on investor behavior, highlighting a preference towards holding Bitcoin directly rather than through exchange-traded funds in times of uncertainty.

BTC’s Macro Bottom: Is the End in Sight?

The pressing question on every trader’s mind is whether Bitcoin’s macro bottom is in yet. After revisiting the $49,000 area—a critical psychological support level—BTC has shown signs of a robust rebound, hinting at a potential trajectory towards a new all-time high. Veteran trader Peter Brandt notes that the current post-halving correction for Bitcoin is reminiscent of the 2015-2017 cycle.

However, Brandt also cautions that, based on historical patterns, attaining a new bull cycle high could still be several weeks away. During this period, Bitcoin price movements might emulate the inverted broadening triangle pattern seen during the 2020 black swan event.

This potential delay underscores the importance for investors to remain patient and vigilant, as the market could display erratic behavior before settling into a definitive trend.

Conclusion

Bitcoin’s recent price action offers a compelling narrative of market resilience and the substantial influence of whale activity. As the crypto space continues to mature, intertwined with global financial markets, discerning patterns and understanding the implications of significant moves have never been more critical.

While the near-term prospects for Bitcoin look promising given the reduced supply on exchanges and persistent whale activity, investors should brace for potential fluctuations. Those interested in further details should stay updated with resources like CoinDesk and Santiment, which provide comprehensive market analysis and on-chain data trends.

As the dynamics between direct Bitcoin holdings and ETFs unfold, savvy investors might find ample opportunities to capitalize on the evolving landscape. Whether you’re a seasoned trader or a newcomer to the crypto world, staying informed and ready to adapt will be key to navigating these intriguing times.

For more insights about Bitcoin’s market movements and on-chain data, you can refer to detailed reports on [Santiment](https://santiment.net/blog/) and recent market analyses by [CoinDesk](https://www.coindesk.com/markets/2022/02/23/bitcoin-moves-higher-after-breach-of-powerful-technical-trendline/).