What was the reason for the 15% jump in the price of Bitcoin last day?
The price of Bitcoin reached its highest level in six months on February 16 (27th of February) after a 15% growth, reaching about $24,800. Now, a review of the data from China shows that the reason for this price jump was nothing but the entry of a huge amount of capital into the market in the past week.
To Report CoinCoinTelegraph, the one-day increase in the price of Bitcoin surprised many traders; Because historically, February has been a bearish month for these digital currencies. In fact, the $1,820 price increase in 24 hours made this the greenest day for Bitcoin in 6 months.
Many investors attribute the increase in the price of Bitcoin to various factors, including the increase in the value of the dollar and the decrease in inflation. However, a review of Anchain’s data suggests that traces of the current price jump can be found in a mysterious fund that started pouring money into the cryptocurrency market on February 10.
According to the data of the Lookonchain report, nearly 1.6 billion dollars of institutional capital has flowed into the digital currency market in the last 6 days. Most of this $1.6 billion has entered the market in the form of stablecoins, especially USD coins issued by Circle. The owner of this capital first withdrew his USD coins from Kordakh withdrawal circle and then sent them to various exchanges.
Lookonchain has traced the assets of three leading wallets from Circle to various exchanges. The first wallet address starting with “0x308F” has withdrawn 155 million USD coins from Circle and transferred them to exchanges since February 10 (21 February). The second wallet address starting with “0xad6e” has withdrawn 397 million USD coins and the third wallet starting with “0x3356” has withdrawn 953.6 million USD coins from Circle and deposited them to various exchanges around the same time.
Bitcoin’s rally comes just days after the digital currency saw its first-ever death crossing on its weekly chart. A death cross occurs when an asset’s short-term moving average, usually 50 days, crosses its long-term moving average, usually 200 days. Despite the bearish nature of this pattern, in recent years we have witnessed higher than average short-term growth following the formation of this pattern.
However, the cryptocurrency community reacted differently to the formation of the death cross on the weekly chart, with Bitcoin fans calling it the start of another uptrend. Samson Mow said about the recent increase in the price of Bitcoin:
The Bitcoin price trend is still moving below the 200-week moving average, which is the $25,000 level. Bitcoin trading below the 200-week moving average is an unusual occurrence.
Historically, in each of the major market cycles, the price of Bitcoin has bottomed out to the 200-week moving average range. Some other analysts called the recent price increase a bear trap and warned that the big players are liquidating their assets.
Read more: Bitcoin history’s first death cross on weekly chart; Should we wait for a sharp fall in the market?