Outside Source
Bitcoin saw the largest surge in transactions exceeding $100,000 in almost two years.
According to prominent crypto analyst Ali Martinez, the 16,900 large transactions on January 4th can be used as an indicator of whale activity in the Bitcoin market, providing valuable perspectives on the potential positions of these influential participants in the crypto market.
Bitcoin’s Whales on The Move
The increase in transactions involving substantial amounts coincides with a period of increased volatility in the overall crypto market. Bitcoin also witnessed a massive plunge primarily triggered by a report from Matrixport, as well as heightened levels of leverage in the market.
However, the premier asset has since recovered and was trading close to $44,000.
In the past 24 hours, #Bitcoin experienced its largest spike in transactions over $100,000 in nearly two years.
The 16,900 large transactions serve as a proxy for $BTC whale activity, offering insights into how these major players might be positioned in the #crypto market. pic.twitter.com/CCnaoBOK0F
— Ali (@ali_charts) January 5, 2024
Interestingly, the milestone comes a day after the 15th anniversary of Bitcoin’s first-ever transaction block on January 3rd, 2009. The “genesis” block included a block subsidy of 50 BTC back then, which is equivalent to an impressive $2.1 million at current market prices.
Bitcoin Predictions
Several industry players have submitted proposals to the Securities and Exchange Commission (SEC) to approve a spot bitcoin ETF for the US, a product that’s expected to open the floodgates to a wave of institutional investment.
The securities regulator, however, has rejected every application, but that may be about to change. Investors are anxiously watching market fluctuations during this uncertain period.
The approval from the SEC is widely anticipated to trigger a Bitcoin rally, fueled by the anticipated surge in demand. Analysts are projecting Bitcoin to potentially reach up to $75,000 if this significant remaining regulatory hurdle is overcome.
BitMEX’s Arthur Hayes, on the other hand, has forecasted a correction in the event of the anticipated launch of US-listed spot Bitcoin ETFs, suggesting that the influx of fiat into these products could propel BTC prices beyond $60,000, approaching the 2021 all-time high of $70,000.
He additionally highlighted the possibility of a more substantial correction ranging from 30% to 40%, attributing it to a potential “dollar liquidity rug pull.”
This article first appeared at CryptoPotato
