Bitcoin and Ethereum Draw Over $19.7 Billion Inflow, Echoing Past Bull Run

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Bitcoin is signaling the start of a new bullish trend, rebounding to $42.6k following a recent sell-off primarily driven by short-term holders (STHs), who constitute the more speculative segment of the Bitcoin investor base. Ether also experienced an upswing, crossing the $2,270 mark alongside the world’s largest crypto.

On the backdrop, substantial capital inflows into Bitcoin and Ether have been observed, which could further influence the price trajectories of these top assets.

Bitcoin, Ethereum Attract Massive Inflow

According to popular on-chain analyst Ali Martinez, December 14th witnessed an influx of over $19.7 billion into Bitcoin and Ethereum. The figure was reminiscent of the capital inflow witnessed exactly three years ago, right before Bitcoin surged from $18,000 to $65,000.

If historical patterns repeat, Bitcoin could potentially follow a trajectory similar to the 2020 cycle, reaching new highs.

Additionally, Greek.live revealed that BTC options have had the upper hand amidst the fresh rally mid-week, constituting 50% of all options volume.

Notably, 50% of block trades actively purchased DEC29 calls. Despite the December 29 expiration option IV being significantly below average, a giant whale opted to go long at the year-end in the bullish market.

Bullish Outlook

Contributing to the recent series of optimistic Bitcoin price predictions, another market commentator speculated that the asset is expected to surpass the $42,000-$45,000 range by the conclusion of the upcoming week. After this point, no significant hurdles are anticipated until reaching $63,000.

Bitcoin’s powerful rally was paused after short-term holders offloaded their holdings for profit-taking. This triggered the third sharpest sell-off event of 2023. Glassnode’s analysis pointed out that the premier crypto had hit near-term exhaustion after soaring to a yearly high of $44.5k.

However, the shrinking BTC supply on crypto exchanges reflected investors’ sentiment to retain their assets and a reduced willingness to sell.

Meanwhile, Arthur Hayes, the former CEO of the BitMEX exchange, also reiterated his previous forecast of Bitcoin eventually hitting $1 million, attributing it to the broader economic shifts that are eroding the value of national currencies.

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Source link Crypto Potato

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