Bitcoin supporters are calling it the start of another bullish wave, while several other analysts believe it is a bear trap.
Bitcoins
BTC
stripes down
$28,072
it hit a six-month high of $24,800 on February 16, posting double-digit gains of 15%.
The one-day rise in the price of Bitcoin surprised many, given that February has historically been bearish for the leading cryptocurrency. The price of BTC rose by $1,820 in one day, making it the biggest green day for the top cryptocurrency in six months.
Many people have attributed the rise in BTC prices to a number of factors, including the rise in the value of the dollar and falling inflation. On-chain data shows that the current price increase can be attributed to a secret fund that started pumping money into the crypto market on February 10.
According to data from Lookonchain, nearly $1.6 billion in institutional capital has flowed into the crypto market in the past six days. Most of the $1.6 billion came from stablecoins, mainly the USD coins issued by Circle
USDC
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$1.00
. The fund owner first withdrew his USDC from Circle and then sent it to various exchanges.
There were three notable wallets whose funds were tracked by Circle on various exchanges. First, a wallet address starting with “0x308F” withdrew $155 million from Circle and moved to exchanges as of February 10. The second wallet address starting with “0xad6e” withdrew $397 million from Circle and transferred to various exchanges, and the third wallet starting with “0x3356” withdrew $953.6 million from Circle and transferred to exchanges around the same time.
Bitcoin’s surge in price comes just days after the top cryptocurrency hit its first weekly death cross. A death cross appears on a chart when an asset’s short-term moving average, usually the 50-day, crosses its long-term moving average, usually the 200-day. Despite the bearish nature of the pattern, the death cross has been followed by above-average short-term returns in recent years.
The cryptocurrency community reacted differently, and Bitcoin supporters called it the start of another bull market. Samson Mow commented on the price increase: “BTC price is still below 200 WMA, which is 25,000. Bitcoin trading below 200 WMA is an anomaly.” In each of the major market cycles, Bitcoin price has historically bottomed around the 200-week moving average. Others called the recent price increase a bear trap, while warning that the big players are cashing out.
