The price of Bitcoin (BTC) is going up today, crossing the $45,000 mark. The general crypto market is feeding from this rally as the majority of cryptocurrencies are trading in the green zone at the time of writing.
Bitcoin, the largest cryptocurrency by market cap, is experiencing a price surge over the last 48 hours. This is the first time the asset has rallied since the approval of the spot ETF by the Securities and Exchange Commission.
Data from Coinstats shows that in the last 24 hours, the price of Bitcoin has risen by over 4%. What could be the factor behind the price growth today? Let’s take a look.
Reasons behind Bitcoin price growth today
One of the reasons attributed to the surge is the accumulation of BTC by Bitcoin whales. A recent report from Bitfinex, a Hong Kong-based crypto exchange, shows that the obstacle to the rise in the value of Bitcoin over the last month was a result of increased miners’ reserve overflows.
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Per the report, Bitfinex claims that to obtain money before the anticipated halving event, which is predicted to drastically lower their earnings, miners were either selling their Bitcoin holdings or using the coins as leverage to raise capital.
CryptoQuant, a leading blockchain analysis provider, suggested in their weekly report that the impact of miners’ selling pressure on the market has reduced and miners are now holding on to their assets.
The report says that there is an increase in ‘exchange to miners’ flow, a metric that shows the total number of Bitcoin sent to miners from crypto exchanges.
“High-volume transfers to miners generally indicate that they are accumulating and not selling on the market. Historical analyses confirm that such transfers are often followed by an uptrend in the Bitcoin price,” the report says.
In addition, Glassnode data shows that there is an increase in BTC whale accumulation. The data shows that wallets holding over 1,000 BTC have increased by 3.6% between January 19 and February 6.
Also, Santiment (a market intelligence provider) data shows an increase in the daily active addresses (DAA), rising from 760,450 to 907,040 between January 21 and February 7.
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Ultimately, the increase in whale activity for Bitcoin signifies the optimism surrounding the asset as the next Bitcoin halving approaches.
Bitcoin price reaction
Meanwhile, Bitcoin price has grown by 4.22% in the last 24 hours. According to Coinstats data, Bitcoin is currently changing hands at $46,578. In addition, BTC has a 24-hour trading volume of $45 billion and a live market cap of $913 billion.
Bitcoin’s price breaking the $45,000 mark has triggered “a spike in short liquidations of approximately $115 million in the last 24 hours,” as noted by Fahad Faqeeh, the founder of HZM coin, in his recent post on X (formerly Twitter).
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Victor Swaezy
Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.