Bitcoin Surpasses $70,000 and Heads Towards All-Time Highs
Bitcoin has achieved a significant milestone by surpassing the highly anticipated $70,000 mark, a level it struggled to reach for the past four months. Not only has Bitcoin re-entered the $70,000 range, but it is also steadily progressing towards its all-time high. It recently reached an intraday high of $71,475 and continues to maintain its gains, putting it just 3.5% away from its peak of $73,750.
This rally in Bitcoin has had a ripple effect throughout the entire cryptocurrency market. The global market has experienced a 4.56% increase in the past day, reaching a total value of $2.4 trillion. This surge reflects a fresh influx of approximately $112.08 billion entering the market within the last 24 hours. Furthermore, market volume has surged by 89.41%, now standing at $100.99 billion.
The unexpected turnaround has led market participants to question the factors behind this surge. The analytics platform CryptoQuant attributes the uptrend in Bitcoin to significant trading activity, particularly from Binance whales, which are large traders on the Binance exchange.
According to an analysis by CryptoQuant market watcher Mignolet, Binance whales have been actively participating in the market during Asian trading hours since October 14. This activity has affected the Coinbase Premium Gap (CPG) data, which tracks the price differences between Coinbase and Binance, two prominent exchanges for U.S. and international traders. Interestingly, the CPG is declining even as Bitcoin’s price rises, indicating a “negative premium.”
Mignolet advises against interpreting this as a drop in U.S. demand. In fact, U.S. Bitcoin spot ETFs have seen increased inflows since October 14, with a net influx of approximately 47,000 Bitcoin, equivalent to around $3.34 billion given Bitcoin’s current market value above $71,000. Additionally, recent inflows into U.S. Bitcoin ETFs reached a six-month high, as reported by The Crypto Basic last week.
Mignolet further points out that the CPG data closely correlates with ETF demand, as most ETF products use Coinbase. Normally, high U.S. demand would drive the CPG to a positive value, but the negative premium suggests that Binance whales are playing a central role in driving Bitcoin’s price. However, U.S. demand remains strong and is not fully reflected in Coinbase prices.
In summary, the current price of Bitcoin is primarily influenced by Binance whales, with significant support from consistent capital inflows from the U.S. It is important to note that this article is for informational purposes only and should not be considered financial advice. Readers are encouraged to conduct thorough research before making any investment decisions, as The Crypto Basic is not responsible for any financial losses.