Will Bitcoin whales help BTC cross $60K?

  • Whale purchases affirmed ongoing institutional interest, defying speculation of exhaustion.
  • iShares Bitcoin ETF hits $1 billion daily volume.

Bitcoin [BTC] has been on a consistent upward trajectory in recent weeks, prompting speculation about the sustainability of institutional interest and its potential to drive BTC to all-time highs.

Whales still looking for more

One striking instance of institutional involvement is evidenced by a whale’s recent purchase of 1,200 BTC, amounting to $68.52 million, from Binance [BNB].

The whale achieved an impressive unrealized profit of $5.3 million in less than two days, underscoring the continuing allure of BTC for significant investors.

Screenshot 2024 02 28 at 2.31.35 PM.png

Source: X

Further solidifying institutional interest is the notable success of the iShares Bitcoin ETF ($IBIT). With a trading volume reaching $1 billion, $IBIT ranked 11th among all ETFs (Top 0.3%) at press time.

This achievement is particularly remarkable for a new ETF amidst stiff competition, emphasizing substantial institutional involvement and confidence, as evident in its robust daily trading volume.

Large-scale investments and the popularity of BTC-related financial products also contributed to increased liquidity, market stability, and potential upward price movements.

There are some concerns about Bitcoin

However, the concentration of BTC holdings among a few large entities could raise concerns about centralization.

While institutional interest bolsters market dynamics, an overly centralized ownership structure could lead to increased volatility and potential market manipulation.

Striking a balance between institutional involvement and maintaining the decentralized ethos of cryptocurrencies will become crucial for the long-term health of the BTC ecosystem.

As of press time, BTC was trading at $56,308.79, displaying a growth of 4.41% in the last 24 hours. This price reflected the ongoing positive sentiment and demand for BTC in the market.

Bitcoin BTC 14.35.08 28 Feb 2024.png

Source: Santiment

Examining the broader Bitcoin ecosystem also revealed insights into user engagement.

Read Bitcoin’s [BTC] Price Prediction 2024-25

Despite the positive price movement, interest in Inscriptions and Ordinals, unique digital assets inscribed on satoshis, has seen a decline.

This trend indicated that users might be more focused on traditional aspects of Bitcoin rather than exploring newer dimensions like Ordinals and Inscriptions.

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Source: Dune Analytics

Next: Profitable Ethereum transactions on the rise – Time to invest in ETH?

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