Altcoin
Bitcoin hits 3-week high above $66,000 as market adds $150 billion
The price of Bitcoin saw a substantial increase, reaching a three-week high of over $66,000.
This surge follows a period of disappointing performance, attributed to the latter United States Consumer Price Index (CPI) numbers and inflows into Bitcoin exchange-traded funds (ETFs). On Friday, Bitcoin fell to just over $61,000 after struggling to clear the $64,000 mark. Bitcoin regained ground over the weekend, settling around $61,000, before bulls pushed the price above $63,000 on Monday.
The rally continued on the back of US CPI data for April, which met expectations at 3.4%. These data pushed the price of Bitcoin above the $64,000 threshold. Subsequent positive inflows into US BTC spot ETFs took the cryptocurrency to a three-week high of around $66,500. Despite a slight retreat, Bitcoin remains above $66,000, with a market capitalization exceeding $1.3 trillion and a dominance over altcoins close to 52%.
Altcoins follow the uptrend of Bitcoin
In line with Bitcoin’s upward movement, most altcoins have also turned green. Ethereum (ETH) surpassed $3,000, recording an increase of 3.6%. Binance Coin (BNB) rose above $580, marking a 3% gain. Other notable altcoins, including XRP and Dogecoin (DOGE), have shown similar growth.
Source: Crypto bubbles
Several altcoins saw significant surges, with Shiba Inu, Avalanche, Polkadot, Bitcoin Cash and Cardano rising 6-8%. However, the standout performers are Solana (SOL) and NEAR Protocol (NEAR). SOL rose 13%, trading well above $160, while NEAR jumped 17%, trading north of $8.1. On the other hand, larger-cap altcoins such as TON and PEPE have seen notable daily declines.
Institutional demand fuels Bitcoin’s rise
The recent surge in the price of Bitcoin is attributed not only to favorable economic data but also to growing institutional demand. Singapore-based QCP Capital noted that weaker-than-expected U.S. CPI data, which rose 0.3% versus economists’ forecast of 0.4%, triggered a breakout for Bitcoin. This move allowed the asset to regain the $66,000 mark for the first time since April, marking its biggest daily gain since March.
QCP Capital highlighted that the bullish momentum could push Bitcoin towards the $74,000 mark in the coming days. The firm observed $100,000 to $120,000 Bitcoin call buying activity for December 2024, indicating strong institutional interest. Asset managers such as Millennium Management and Schonfeld have reportedly invested 3% and 2% of their assets under management (AUM) in spot Bitcoin ETFs, further demonstrating the growing institutional demand.
Market stability and reduction of selling pressure
Analysts have noted reduced selling pressure on Bitcoin, citing on-chain and exchange data. According to CryptoQuant, short-term Bitcoin holders, defined as addresses that hold Bitcoin for less than 155 days, sell at almost zero profit. This trend suggests that traders are exhausting their unrealized profits, stabilizing Bitcoin balances at over-the-counter (OTC) desks and indicating a decrease in the supply of Bitcoin entering the market for sale through these entities.
Bitcoin’s breakout follows weeks of low volatility, with the market remaining within a range of $60,000 to $70,000 since March. Despite the halving in April, which did not provide the expected boost due to the lack of market catalysts, recent developments have reignited market activity.
The increase in risk appetite for token bets began earlier this week, partially influenced by a post from a retail trader Keith Gill on. Gill is best known for his role in GameStop’s stock surge in 2021. Some have seen his social media activity as a potential indicator of market volatility in the months ahead.