• Bitcoin prices have surged above the USD$23,000 level, signaling bullishness in the market.
• On-chain flows indicate that the amount of Bitcoin moved from mining addresses to exchanges has decreased to multi-year lows.
• Analysts attribute the recent uptick in Bitcoin price to large wallets (>$1M) accumulating Bitcoin, creating the buying pressure that followed the FTX saga and bearish events of last year.
Bitcoin’s Bull Run Continues as Prices Surge Above USD$23,000
The Bitcoin market has been on an impressive bull run, with the flagship cryptocurrency’s price surging past the USD$23,000 level. This surge in prices is being attributed to a reduced amount of Bitcoin being sold by miners, as well as major market actors accumulating large amounts of the cryptocurrency.
On-chain flows, as flagged by Bitfinex analysts, indicate that the amount of Bitcoin moved from mining addresses to wallets owned by cryptocurrency exchanges has decreased to multi-year lows. This suggests that miners are in the mood to accumulate coins as they expect the surge of prices of the flagship cryptocurrency. This lowered selling pressure from miners bodes well for the broader market, as it means that there is less resistance to the bulls in the market.
Analysts also attribute the recent uptick in Bitcoin price to large wallets (>$1M) accumulating Bitcoin. These wallets, as well as major market actors, are responsible for creating the buying pressure that followed the FTX saga and other bearish events that occurred last year. Since the second week of January, the numbers of wallets with $1,000 and $10,000 worth of Bitcoin have increased, indicating that investors are confident in the future of the cryptocurrency.
While the current bull run is a positive sign, analysts warn that it might be short-lived as some investors may be looking to cash out and recoup their profits. Regardless, the current surge in prices is a sign that investors are bullish on the future of Bitcoin, and it is likely that the cryptocurrency will continue its trend of growth in the coming months.