With Bitcoin’s (BTC) price breaching the $20,000 mark, the market cap of the flagship cryptocurrency is currently worth more than the combined value of Visa and MasterCard. The latest push comes after the U.S. CPI reading came out close to market expectations at 6.5%; which opens up opportunities for asymmetric assets like Bitcoin. However, certain on-chain data is also indicating a growing number of whale activity which is likely acting as a catalyst for BTC’s positive price swing.
On January 14, the price of Bitcoin surpassed $21,000 as investors bet that inflation might have bottomed out or was on the decline. The value of the first cryptocurrency in existence, rose by 7.5%, reaching a peak of $21,299. The price hasn’t been above $20,000 since November 8, and today marked the 11th consecutive day of its growth.
According to a report that was published by Santiment, a behavior analysis platform, the number of Bitcoin (BTC) addresses owning between 100 and 1,000 BTC has been quickly increasing. With the ongoing whale accumulation, the data further states that the price pump will likely have a ripple effect on the wider crypto market.
The chart posted by Santiment reveals that there are over 416 addresses that contain between 100 and 1,000 BTC. This represents an increase of 3.04% in only the last eight weeks. Along with the price increase, BTC’s trading volume has also risen by 38% over the last 24 hours. This has taken the total volume for Bitcoin to roughly $44 billion and a 9.46% increase in market capitalization, at the time of writing. The price of Bitcoin had been stuck in a narrow range between $16,000 and $17,000 for several weeks prior to the most recent breakthrough.
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According to data obtained from Coinglass, the upward swings have caught shorts off guard with short liquidations exceeding $100 million over the last five days. On January 14th, the highest amount surpassed $296 million. Also, as per IntoTheBlock’s analytics, exchange flows for Bitcoin and Ethereum have now stabilized. This has been noted as the lowest outflow since the catastrophic FTX crash caused by its founder Sam Bankman-Fried. This shows that concerns about centralized exchanges have also diminished.
As things stand, the Bitcoin (BTC) price is currently being traded at $20,739. This represents an increase of 10.23% on the day, in contrast to a gain of 23.12% during the week as per CoinGape’s crypto market tracker. Ethereum, the second-largest cryptocurrency, had its value increase by as much as 9.7%, while other cryptocurrencies, such as Cardano and Dogecoin, also saw substantial price hikes.
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