Bitcoin (BTC), the largest cryptocurrency, has begun to show signs of recovery from the $42,200 level after speculative investors’ sales, and is signaling the start of a new uptrend. The king of altcoins, Ethereum (ETH), is also showing signs of recovery, surpassing $2,270. While high amounts of funds are being detected flowing into BTC and ETH, it is anticipated that this could affect the price of these two major cryptocurrencies.
According to on-chain analyst Ali Martinez, on December 14th, Bitcoin and Ethereum witnessed more than $19.7 billion in fund inflows. This amount recalls the fund flow observed three years ago before Bitcoin’s rise from $18,000 to $65,000. If historical patterns repeat, the largest cryptocurrency could potentially reach new peaks by following a trajectory similar to the 2020 cycle.
Greek analysis platform Greek.live explained that BTC options accounted for 50% of the total volume during the midweek rally, standing out significantly. Half of the transactions in the options market were carried out by particularly one whale, who preferred to take long positions in the rising market lasting until the end of 2023.
Bitcoin’s current strong rally slowed down a bit as short-term investors began to realize their profits. This triggered the third sharpest sell-off wave of 2023. According to the analysis by on-chain data platform Glassnode, after Bitcoin reached the year’s highest level of $44,500, it entered a phase of short-term exhaustion. Moreover, the decrease in BTC supply on cryptocurrency exchanges reflects investors’ sensitivity to protecting their assets and a decrease in their desire to sell.
Many market commentators have recently made optimistic price predictions for Bitcoin, expecting the largest cryptocurrency to exceed the range of $42,000 to $45,000 by the end of the next week. They anticipate no significant barrier until $63,000 and expect the price to rise to this level. Furthermore, BitMEX co-founder and former CEO Arthur Hayes reiterated his prediction that the price of Bitcoin will ultimately reach $1 million, continuing to relate this to general economic changes in the value of national currencies.
