Bitcoin has witnessed a significant surge in value, surpassing the $47,000 level, as buying pressure on Coinbase remains strong. After a period of indecision, the cryptocurrency has finally picked a direction, leading to a sharp increase in its price. Although there has been a slight pullback, with the coin currently at $46,500, this surge marks a notable gain of over 4% in the last 24 hours. Solana (SOL) and Bitcoin Cash (BCH) are the only cryptocurrencies in the top 20 market cap list that have achieved better returns during this period.
The recent rally to levels not seen since March 2022 aligns with the approaching deadline set by the US Securities and Exchange Commission (SEC) for a decision on Bitcoin spot exchange-traded funds (ETFs). With expectations in the market leaning toward approval of the ETFs, it is not surprising to see buyers entering the market, anticipating further price rallies once the ETFs begin trading.
Furthermore, data from an indicator hints at the involvement of large entities in accumulating Bitcoin in the lead-up to the SEC’s decision day. The Bitcoin Coinbase Premium Gap, which measures the difference between Bitcoin prices on Coinbase (USD pair) and Binance (USDT pair), has been consistently positive for an extended period. This gap reflects the variation in buying and selling behaviors between the two major platforms. The positive trend suggests that buying pressure on Coinbase has surpassed that on Binance for over a week. Given that US-based institutional investors predominantly utilize Coinbase while Binance serves a more global user base, this indicates possible accumulation by large institutional traders.
Additional evidence of accumulation from big players can be found in the large holders netflow metric provided by IntoTheBlock, which has recently shown positive spikes.
In summary, Bitcoin has experienced a significant surge in value, propelled by continued institutional buying on Coinbase. Buyers are optimistic about the upcoming SEC decision on Bitcoin spot ETFs, leading to increased trading activity and expectations of further price gains. Trends in indicators such as the Bitcoin Coinbase Premium Gap and large holders netflow suggest a strong presence of institutional traders engaging in accumulation. As the cryptocurrency market continues to evolve, investors and enthusiasts eagerly await the outcome of regulatory decisions that could impact the industry’s future.
Frequently Asked Questions (FAQs) Related to the Above News
What is contributing to Bitcoin's recent surge in value?
The surge in value can be attributed to continued buying pressure on Coinbase, one of the major cryptocurrency exchanges. This buying pressure has resulted in a sharp increase in Bitcoin's price.
How much has Bitcoin's price increased in the last 24 hours?
Bitcoin's price has increased by over 4% in the last 24 hours, reaching a level above $47,000. However, there has been a slight pullback, and the coin is currently priced at around $46,500.
Are there any cryptocurrencies that have outperformed Bitcoin in terms of returns during this period?
Yes, Solana (SOL) and Bitcoin Cash (BCH) are the only cryptocurrencies in the top 20 market cap list that have achieved better returns than Bitcoin in the last 24 hours.
What is the significance of the approaching deadline set by the US Securities and Exchange Commission (SEC) for a decision on Bitcoin spot exchange-traded funds (ETFs)?
The approaching deadline for the SEC's decision on Bitcoin spot ETFs has created anticipation in the market. There are expectations that the ETFs will be approved, which is leading to increased buying activity in anticipation of further price rallies once the ETFs start trading.
Is there any indication of large entities accumulating Bitcoin ahead of the SEC's decision?
Yes, data from the Bitcoin Coinbase Premium Gap indicator suggests the involvement of large institutional traders. The positive trend in the premium gap, which measures the difference in Bitcoin prices between Coinbase and Binance, suggests that buying pressure on Coinbase has surpassed that on Binance for over a week. This indicates possible accumulation by institutional traders, as Coinbase is predominantly used by US-based institutional investors.
Is there any additional evidence of accumulation by large holders?
Yes, the large holders netflow metric provided by IntoTheBlock has shown positive spikes recently, indicating accumulation by big players.
What can be expected in the future based on these trends?
Based on these trends, buyers remain optimistic about the SEC's decision on Bitcoin spot ETFs. This is driving increased trading activity and expectations of further price gains. As the cryptocurrency market evolves, investors and enthusiasts eagerly await regulatory decisions that could influence the industry's future.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
Neha Sharma
Neha Sharma is a tech-savvy author at The Reportify who delves into the ever-evolving world of technology. With her expertise in the latest gadgets, innovations, and tech trends, Neha keeps you informed about all things tech in the Technology category.She can be reached at neha@thereportify.com for any inquiries or further information.
