Bitcoin Price Soars 11%, Here Are The Reasons
16 Februar 2023 - 09:55AM
NEWSBTC
The Bitcoin bulls are back for good. The BTC price has risen by
about 11% in the last 24 hours. At one point, Bitcoin reached a
price of $24,789 and took a breather just before the August 15,
2022 high at $25,195. The rally is likely to have caught some bears
off guard. After Tuesday’s headline CPI came in at 6.4% higher than
expected (6.2%), but still lower than the previous month on a
year-over-year basis (6,5%), market disappointment was initially
high; nevertheless, BTC saw an initial push to the upside as early
as Tuesday. Then, on Wednesday, US retail sales for January 2023
were released. Those rose 3.0% in January, an impressive rebound
from December’s -1.1% and well above the consensus estimate of
2.0%. Subsequently, Bitcoin experienced a surprising decoupling
from the rest of the financial market. While Bitcoin began its
massive rally, the S&P 500 remained largely stuck at its level.
The dollar index (DXY) even rose in parallel with Bitcoin – an
event that has been extremely rare in recent months due to the
inverse correlation. Bitcoin is also defying financial market fears
that the recent CPI and U.S. retail sales will give the
data-dependent Federal Reserve more arguments for higher and longer
rate hikes. In addition, there are fears about a recession. So What
Has Been Driving Bitcoin Prices Higher? Crypto analytics service
Santiment has cited a surge in Bitcoin holdings by owners with 100
to 1,000 BTC. However, while this cohort of investors has
accumulated Bitcoin, the sharks (1,000 to 10,000 BTC) and whales
(more than 10,000 BTC) have not provided any sign of major buying
behavior. Data provider Lookonchain reports that they have found
that several funds and institutions have put nearly $1.6 billion
into the crypto market since February 10. For this, Lookonchain
analyzed the data on USDC deposits and withdrawals on Circle from
February 10 until today. Related Reading: Bitcoin Price Surges To
$25K, Dips Turn Attractive In Medium-term As a result, it turns out
that several funds and institutions have withdrawn about $1.6
billion USDC from Circle and only deposited $0.2 billion USDC. One
mysterious fund has withdrawn $155 and $397 million USDC from
Circle and transferred them to exchanges since February 10. Another
unknown fund has reportedly withdrawn $953.6 million USDC from
Circle and transferred it to exchanges. A fund linked to FalconX
also withdrew $143 million USDC from Circle. 1/ Why did the price
of $BTC/$ETH suddenly rise today? We found that several
funds/institutions poured nearly $1.6B into the crypto market since
Feb 10!👇 pic.twitter.com/WRaSv4YtgP — Lookonchain (@lookonchain)
February 16, 2023 Other Factors That Might Play A Role The crypto
market and Bitcoin may also have been positively impacted by the
news that Binance is working with U.S. regulators to settle for
past misconduct with a fine reportedly ranging from $1 billion to
$2 billion. A rather very vague rumor is that Russian investors may
have stormed into Bitcoin and crypto. The rationale behind this is
that prior to the announced new sanctions against the two largest
Russian banks that were previously allowed to use SWIFT and play
the largest role in P2P on Binance, namely Tinkoff and Rosbank –
have led Russian investors to rush into of what was almost their
last chance to buy Bitcoin. Related Reading: Is The Biden
Administration Behind Attack On Crypto? Meanwhile, an analysis by
CryptoQuant shows that yesterday’s price action resulted from
aggression in the futures market. While traders opened short
positions, open interest increased and the price moved against the
short positions. This resulted in an impulse candle to the upside.
According to Coinglass data, total short liquidations for Bitcoin
were $155.3 million yesterday. At press time, the Bitcoin price
stood at $24.612, facing the next major resistance at $25.195.
Featured image from iStock, Chart from TradingView.com
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