Bitcoin’s Largest Price Surge Since February 2022 Hits 12% in One Day

Bitcoin’s (BTC) price recovery from Monday’s market rout is beyond impressive, as it surged nearly 12% on Thursday, marking the cryptocurrency’s biggest single-day gain since February 28, 2022. This rally in BTC, alongside an 11% jump in total crypto market capitalization to $2.11 trillion, has effectively quelled recession fears and drawn significant investor interest.

Recession Fears Eased by Positive U.S. Job Data

The uptick in Bitcoin prices coincided with U.S. trading hours, bolstered by better-than-expected U.S. jobless claims data that mitigated recession concerns and drove U.S. stocks higher. Wall Street’s fear index, VIX, fell to 23, providing positive cues to risk assets, including cryptocurrencies.

Moreover, the rally in the anti-risk Japanese yen halted as the Bank of Japan resisted near-term rate hikes, drawing additional interest in Bitcoin and other cryptocurrencies.

Significant Investments in U.S.-Listed Spot Exchange-Traded Funds (ETFs)

Recent data from Farside Investors show that U.S.-listed spot ETFs amassed $194.6 million in investor funds—the highest tally since July 2022. Notably, BlackRock’s IBIT alone drew $157.6 million in investments, showcasing a renewed confidence in the digital asset space.

Bitcoin Price Movements and Whale Accumulation

Before this surge, Bitcoin had experienced significant selling pressure due to the Bank of Japan raising interest rates, sparking concerns over the U.S. economy. BTC dipped as low as $50,000 on Monday, down from nearly $70,000 a week prior.

According to blockchain analytics firm Santiment, whales—wallets holding large quantities of BTC—capitalized on Monday’s price crash. Their data revealed that August 5th and 6th saw the highest level of Bitcoin whale transactions since the first week of April. Whales rapidly accumulated BTC as prices fell below $50,000, offering a clear bullish signal amidst market panic.

Key Levels to Watch

**Alex Kuptsikevich**, a senior market analyst at FxPro, identified $61,800 as a key resistance level for Bitcoin. Should BTC close above this level, it could potentially rally quickly to $67,000.

• 61,800 USD: Confluence of the 50- and 200-day simple moving averages.
• 55,500 USD: Previous sustained lows, marking a crucial support level.
• 54,000 USD – 50,000 USD: Major support areas, repeatedly tested yet showing persistent demand each time BTC dips into this range.

Geopolitical and Policy Factors

Investment Advisor Two Prime noted that geopolitical issues and the Federal Reserve’s policies are decisive for Bitcoin’s next significant price movements. Key events to watch include the potential escalation of the Israel/Iran conflict and any intervention by the U.S. government to address risks in both geopolitical and monetary policy arenas.

“We continue to watch $54K as a major support area, followed by $50K. So far, these levels remain intact, and there has been persistent demand each time Bitcoin has reached this area,” Two Prime stated in a Telegram note to clients.

“We are also monitoring the geopolitical landscape and the Federal Reserve’s policies closely. Any unexpected developments or interventions in either arena could significantly impact Bitcoin’s price direction,” they added.

Market Sentiment and Investor Actions

With risk assets showing renewed strength, significant investor actions signal robust confidence in the market. The recent influx of funds into U.S.-listed spot ETFs and whale activity during market dips exemplify this positive sentiment.

For those tracking BTC and other cryptocurrencies, the key takeaway is that market dynamics are rapidly evolving. Staying informed and vigilant about various factors—from macroeconomic indicators to geopolitical events—is crucial for making well-informed investment decisions.

Conclusion

The remarkable 12% surge in Bitcoin prices highlights a recovery fueled by positive macroeconomic data and strategic investor actions. As BTC approaches critical levels like $61,800 and $54,000, market participants should keep a keen eye on both technical signals and broader geopolitical developments.

For further insights on cryptocurrency market trends, visit [CoinDesk](https://www.coindesk.com) and [CryptoSlate](https://cryptoslate.com/). Being adequately informed allows investors to navigate this highly volatile market more effectively.

This article was edited by Parikshit Mishra and follows strict editorial policies to ensure accurate and unbiased reporting. Note that CoinDesk, acquired by the Bullish group, operates independently despite its ownership’s significant holdings in digital assets, including Bitcoin.