- Several funds/institutions poured nearly $1.6 billion into the crypto market since February 10.
- Bears have taken over the market as the price of BTC has plummeted.
Bitcoin [BTC] surprised the entire cryptocurrency market by posting gains as its price crossed $25,000 on February 16. This was good news as BTC reached this point after a long eight month struggle. Additionally, according to Santiment, one reason behind the pump was that the whales had accumulated $2.7 billion in Tether [USDT] from December 2022.
🐳🦈 Identifying the reasons for #Bitcoin being able to break $25k for the first time in 8 months we can start with the key #Rope purchasing power of sharks and whales that has been increasing since early December. Key stakeholders continue to charge for more purchases. https://t.co/zknJcDgf9z pic.twitter.com/o8hbxQyGcv
— Santiment (@santimentfeed) February 16, 2023
Reading of Bitcoin [BTC] Price Prediction 2023-24
Several factors came into play for Bitcoin
In addition to this, Lookonchain also pointed out another factor that could be attributed BTCwave of According to the analysis, many funds and institutions have poured nearly $1.6 billion into the crypto market since February 10, 2023, despite the bearish market at the time.
For example, nearly 1.6 billion USDC were withdrawn from Circle during this period. Additionally, another address, ‘0x308F’, withdrew 155 million USDC from Circle and transferred it to exchanges.
1/ Why its price $BTC/$ETH suddenly rising today?
We found that many funds/institutions poured almost $1.6 billion into the crypto market since February 10th!👇 pic.twitter.com/WRaSv4YtgP
— Lookonchain (@lookonchain) February 16, 2023
The aforementioned developments had a positive impact on the market, resulting in an upward rally. However, the move north was short-lived as the market soon experienced a reversal.
According CoinMarketCapthe price of BTC has fallen by over 3.8% in the last 24 hours and at the time of writing, it was trading at $23,713.42 with a market capitalization of over $457.4 billion.
Which metrics are at fault?
A look at BTC’s on-chain metrics revealed several reasons that supported the bears and caused the most recent price drop. For example, according to CryptoQuant, BTC’s foreign exchange reserve was rising, indicating higher selling pressure. BTC’s aSORP was red, suggesting more investors sold their holdings for profit amid the bull rally.
Another bearish signal was the decline BTCits open interest in the last 24 hours as it plummeted over 9%.
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Santiment’s chart also pointed out some interesting metrics. The recent drop in BTC price was accompanied by high volume, further legitimizing the downtrend. Negative sentiment around BTC has increased in recent days, indicating less confidence among investors in the currency. In addition, the inflow of BTC currency increased significantly.
Glassnode’s diagram is interesting revealed that the average BTC trading volume just hit a one-month high of 1,869 BTC. After recording a significant rise, BTCThe MVRV ratio fell, further increasing the chances of a continued downtrend in the coming days.