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27 September, 2024

Bitcoin Surges Above $65,000: Whale and Shark Activity Drives Price Recovery

27 September, 2024

Bitcoin Reclaims $65,000: A Look at the Driving Forces

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Bitcoin has just breached the $65,000 mark for the first time in two months, leaving the $63,000 resistance level in its wake. This impressive surge, representing a nearly 23% climb from the September 6th low of $53,400, has pushed many holders into profitability.

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According to Santiment, a leading on-chain analytics platform, this upward price movement is largely fueled by increased activity from whales and sharks. These large-scale investors have been accumulating Bitcoin at a significant rate, indicating a strong belief in its future prospects.

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Whale and Shark Accumulation Fuels Bitcoin’s Rise

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Since mid-September, Bitcoin has regained its position as a central investment asset, driven by shifts in global market dynamics. Santiment’s data reveals a consistent accumulation trend among wallets holding ten or more BTC over the past six months. This steady buying behavior has been crucial in stabilizing the price, especially during market corrections where Bitcoin has faced downward pressure.

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These addresses have collectively accumulated $4.08 billion worth of BTC in the past six months, bringing their total holdings to 16.19 million BTC. The surge in accumulation gained significant momentum in mid-September, coinciding with the Fed’s reduction of the base interest rate, suggesting a renewed wave of confidence among these Bitcoin investors.

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Bitcoin’s Bullish Outlook

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September has historically been a pivotal month for Bitcoin’s price performance in the final quarter of the year. While the initial weeks appeared bearish, they now seem to have paved the way for a potential surge in the last quarter of 2024.

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At the time of writing, Bitcoin is trading at $65,470, up 2.6% in the past 24 hours. Institutional investors have resumed their Bitcoin investments this week, leading to consecutive days of inflows into spot Bitcoin funds, with a net inflow of $365.7 million in the past 24 hours.

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Bitcoin has also witnessed a notable increase in open interest, reflecting the growing interest from investors. Coinglass data shows an open interest of $35.90 billion across multiple exchanges, representing a 3.53% increase in the past 24 hours. This surge in open interest could further fuel price increases as traders around the world continue to show interest in Bitcoin.

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The Path Forward for Bitcoin

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The next hurdle for Bitcoin’s price is a bullish break above the July high of $70,162. Sustaining this momentum could pave the way for Bitcoin to easily break into new all-time highs in October.

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The increased activity from whales and sharks, coupled with institutional investment and rising open interest, paints a promising picture for Bitcoin’s future. As the crypto market continues to evolve, the potential for further price increases remains significant.