Bitcoin (BTC) bulls continued to dominate on Monday, with the world's largest cryptocurrency by market value soaring over 15% last week and consolidating above the $34500 level.Optimism about the upcoming approval of spot Bitcoin Exchange Traded Funds (ETFs) in the United States, as well as increasing risk aversion as Bitcoin outperforms the declining stock and bond markets, have supported Bitcoin prices ahead of the week
Bitcoin (BTC) bulls continued to dominate on Monday, with the world's largest cryptocurrency by market value soaring over 15% last week and consolidating above the $34500 level.
Optimism about the upcoming approval of spot Bitcoin Exchange Traded Funds (ETFs) in the United States, as well as increasing risk aversion as Bitcoin outperforms the declining stock and bond markets, have supported Bitcoin prices ahead of the week. Some important economic events in the United States.
The Federal Reserve will release its latest monetary policy decision on Wednesday, while important monthly employment reports and ISMPMI survey data from the United States are also scheduled to be released.
The recent strong US economic data and the Fed's tough rhetoric (which seems to plan to maintain high interest rates for the long term) put the stock market on the defensive in October. Given the close correlation between Bitcoin and the US dollar, Bitcoin's recent outstanding performance is shocking. Stocks as of 2022.
Bulls continue to predict that Bitcoin will break through $40000 in the near future, and Matrixport recently called for Bitcoin prices to rise to at least $42000 after official news that spot Bitcoin ETFs have been approved in the United States.
This indicator indicates that whales are awakening
The on chain data supports the view that the Bitcoin market is heating up.
According to data provided by encryption analysis company IntoTheBlock, the number of large transactions worth over $100000 on the Bitcoin blockchain surged to its highest level in 2023 last week.
IntoTheBlock pointed out in a blog article published on Medium that "Bitcoin spot ETF applications seem to have increased whale and institutional interest in Bitcoin," and added that "the recent increase in institutional activity may be a precursor to what will happen in 2024.
Bitcoin Large Transaction
As expected, the surge in high-value transactions occurred at a time when the dollar value of the total transfer volume on the Bitcoin blockchain was also increasing.
According to data provided by Glassnode, the 7-day moving average of the index hit a nearly one-year high of over $32.5 billion last week.
Total Bitcoin Transmission Volume
In recent months, the number of Bitcoin transactions has experienced significant fluctuations. Last month, the 7-day moving average of the index hit a historic high of nearly 600000 transactions per day, and then significantly declined and rebounded in recent weeks.
The significant fluctuations in on chain indicators that we have seen recently are a typical phenomenon during the Bitcoin bull market, and many analysts now believe that we are in a bull market.
The approval of spot Bitcoin ETF applications is not the only bullish claim that may boost BTC prices in 2024.
Analysts also pointed out that the halving of Bitcoin issuance rate (a historically bullish event), the beginning of a new round of interest rate cuts by the Federal Reserve (indicating potential macro resistance), and the potential for US regulatory agencies and Congress to further clarify this to increase Bitcoin prices.
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