In a decisive turn of events over the last 24 hours, Bitcoin has broken its recent indecisiveness, experiencing a substantial surge in price. The cryptocurrency soared beyond the $47,300 mark at the peak of this rally, only to witness a slight pullback, settling around $46,500. The accompanying chart illustrates Bitcoin’s performance during this period.
Marking a remarkable 4% increase in the past day, Bitcoin stands out among the top 20 cryptocurrencies by market capitalization, with only Solana (SOL) and Bitcoin Cash (BCH) boasting better returns.
This surge, propelling Bitcoin to levels unseen since March 2022, coincides with the approaching deadline set by the US Securities and Exchange Commission (SEC) for a decision on Bitcoin spot exchange-traded funds (ETFs). Anticipation in the market leans towards widespread approval of the ETFs, prompting buyers to enter the market with expectations of further rallies once ETF trading commences.
Adding to the bullish sentiment is the positive trend in the Bitcoin Coinbase Premium Gap, highlighted by CryptoQuant Netherlands community manager Maartunn. The premium gap on Coinbase has maintained positivity for an extended period in 2024, with only a minor dip recorded on the first day of the year. This suggests that buying pressure on Coinbase has consistently outpaced that on Binance for over a week. Notably, US-based institutional investors favor Coinbase, while Binance caters to a more global audience.
The sustained positive premium gap implies significant accumulation, possibly driven by large institutional traders. Supporting this notion is the “large holders netflow” metric from IntoTheBlock, revealing recent positive spikes. IntoTheBlock notes, “Large holders bought the dip! Bitcoin holders with holdings surpassing 1% of the supply accumulated more than 14k BTC over the past week as prices dipped below $43k.”
As Bitcoin gains momentum and institutional investors continue their active involvement, the cryptocurrency market remains dynamic, responding to regulatory deadlines and indicators signaling increased accumulation by major players.
