Bitcoin The price reached $57,000 for the first time in two years. overcoming It triggered excitement in the cryptocurrency market.
As Koinfinans.com reported, this increase was due to a combination of factors such as significant corporate purchases and bullish sentiment in the market.
The rise of Bitcoin price was further strengthened with the start of trading hours in Asia and increased by over 10% in a short time.
This uptrend also gained strength when MicroStrategy, a leading crypto investor and software firm, recently announced that it purchased approximately 3,000 BTC, spending $155 million.
The critical driving force behind Bitcoin’s recent price increase appears to be tied to increased interest from institutional investors, as evidenced by on-chain data.
CryptoQuant analyst Ki Young Ju, big cryptocurrency He stated that the owners, the whales, started to accumulate BTC. This accumulation led to these investors making unrealized profits of 38%.
Bitcoin On-Chain Data is Very Active
With the increasing importance of on-chain data, capital inflows are attracting more attention, especially after ETF approval. While a significant portion of capital inflows come from institutions, investors continue to keep the excitement high.
Yann Allemann, co-founder of analytics firm Glassnode, shared another perspective on the current rally:
Allemann points out a distinctive feature of this rise compared to previous peaks. This means that positions against Bitcoin continue to be opened by short sellers who are liquidated as the price rises. This scenario is in stark contrast to typical bull market peaks where leveraged long positions are wiped out. In other words, it indicates confidence that the price will continue to remain strong in the long term.
