The Bitcoin market is seeing a sharp increase in activity thanks to the contribution of Bitcoin whales and smaller investors, which is fueling the recovery of the leading cryptocurrency.
Transactions exceeding $100,000 on the Bitcoin blockchain hit a peak so far this year, with an impressive total of 23,400 last week according to GlassNode analysis.
This increase in high-value transactions reflects the renewed interest of Bitcoin whales, those investors with considerable capital reserves and the ability to influence market trends.
Its activity has increased in step with the recent rally in the price of Bitcoin above $35,000, reaching its highest level since May 2022.
So far this year, Bitcoin has seen a notable 107% rise, with an impressive 27% rise in the last month, driven by optimism around Bitcoin exchange-traded funds (ETFs) and growing demand as a refuge of value.
NOT ONLY WHALES ARE LEADING
Retail investors are also becoming increasingly prominent in the Bitcoin market. Blockchain data reveals that the retail investor activity index hit a year-to-date high, hitting 1.5 last week.
This shows that smaller investors are entering the market en masse, which is reflected in a significant increase in the average value of transfers on the Bitcoin blockchain.
André Dragosch, Head of Research at Deutsche Digital Assets, underlines that this increase in retail investor activity is a crucial indicator for a sustained bull market in crypto assets.
The participation of retail investors is considered a necessary component to ensure healthy growth in the market.
In addition, the approval of several physical asset-based Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) is eagerly anticipated early next year 2024, which could serve as a significant catalyst for the cryptocurrency market.
Analysts predict that this move could raise Bitcoin’s market value to a staggering $42,000 and beyond, opening up new possibilities for cryptocurrency investors.
The future of Bitcoin looks bright. This market resurgence indicates that cryptocurrencies remain a major focus in the financial world and can play a crucial role in the year 2024.
