Bitcoin is back above $44,000 for the first time since Spot Bitcoin ETFs were approved for trading in January. This price increase is believed to be due to several factors that have recently worked in favor of the bulls.
BTC whales are accumulating more Bitcoin
Citing data from Glassnode: Crypto analyst Ali Martinez revealed Recently, Bitcoin whales have been accumulating more BTC, with around 73 new addresses now holding 1,000 BTC or more. This figure is said to represent an increase of 3.66% over the past two weeks, continuing the accumulation trend.
NewsBTC had previously reported how Bitcoin whales went on a buying spree after Bitcoin dropped below $40,000. The flagship crypto token is believed to have fallen to this level due to significant selling pressure from Grayscalethe issuer of the GBTC Spot Bitcoin ETF.
However, the asset manager has cooled its BTC sales recently as outflows from the fund continue to decline. This is another factor that may have contributed to Bitcoin’s recent price rise. Data from on-chain analytics platform Arkham Intelligence shows that other whales like it FTX and Alameda Research have also slowed down on offloading their crypto tokens.
Discover Bitcoin ETFs that do their part
There was increased institutional demand for Bitcoin thanks to the Spot Bitcoin ETFs. This is evident in the success these funds have achieved since their launch. As a result, the issuers of these funds are like that The world's largest asset manager BlackRockhad to accumulate a significant amount of Bitcoin.
Most recently it was these asset managers reported hold over 657,000 BTC, making up more than 3% of the circulating Bitcoin supply. The newly listed Explore Bitcoin ETFs (excluding Grayscale) hold around 187,000 BTC alone. Interestingly, these funds are well on their way to achieving this outperforms MicroStrategywhich has a BTC inventory of 190,000.
Meanwhile, there are spot Bitcoin ETFs could start soon in Hong Kong, with 10 applications already submitted to the country's financial regulators. This is another narrative that could be driving Bitcoin’s current price rise. see the effects that the approval rumors in the US had an impact on the Bitcoin price towards the end of last year.
Hong Kong is not the only country in Asia showing as much enthusiasm for cryptocurrencies as Thailand recently reported to have abolished value added tax (VAT) on crypto trading.
At the time of writing, Bitcoin was trading at around $44,800, up over 4.4% in the last 24 hours, according to data from CoinMarketCap.
BTC recovers to $44,800 | Source: BTCUSD on Tradingview.com
Featured image from Medium, chart from Tradingview.com
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