In recent financial developments, significant activity among Bitcoin‘s largest holders—known as whales—has kindled a resurgence of interest following a notable market movement on Wednesday. Bitcoin saw a reversal from its $60,000 support level to reach a peak of $72,000 this week, but experienced a slight pullback, temporarily falling below the $70,000 threshold.
Renewed Appetite for Bitcoin Investments
The demand for Bitcoin-related investment products, particularly ETFs, coupled with a high-risk appetite from institutional investors, has kept the cryptocurrency‘s price hovering around $70,500 as of Thursday. The stability of Bitcoin’s price is evident with a marginal 24-hour increase of 0.22%. The reported trading volume has seen a 27% surge to $43 billion, as indicated by CoinMarketCap, signifying a renewed investor interest.
Insights into Bitcoin Exchange-Traded Funds
In the realm of Bitcoin ETFs, Fidelity’s FBTC ETF, which holds an estimated 143,000 BTC valued at around $10 billion, is gaining attention. As reported on March 27, Bitcoin ETFs have witnessed a substantial daily net inflow of $243 billion, boosting the cumulative total to $11.94 billion. However, Grayscale’s GBTC ETF has experienced a net outflow, being the only ETF with a significant daily outflow of $300 million and a cumulative total reaching $14.66 billion.
With the upcoming Bitcoin halving in April, both institutional and individual investors have started to take early positions, particularly during March’s price dip when whales actively increased their BTC holdings. The cryptocurrency analytics firm Santiment spotlighted a massive transaction of over 15,411.92 BTC, marking it as the third-largest within a fortnight. Santiment suggests that ahead of the halving, which is just three weeks away, whales are heavily accumulating Bitcoin, accompanied by a growth in perpetual contract funding rates, pointing to a potentially strong upward momentum for the cryptocurrency.
