The largest cryptocurrency, Bitcoin (BTC), is signaling the beginning of a new uptrend, signaling a recovery from $42,200 following the recent sell-off driven by short-term investors (STHs), who form the more speculative segment of the investor base. The altcoin king #Ethereum (ETH) has also exceeded 2 thousand 270 dollars, giving a recovery signal. In the background, high inflows have been detected into BTC and ETH, and this inflow may affect the price of the two largest cryptocurrencies as expected.
High Money Inflow into Bitcoin and Ethereum
According to veteran on-chain analyst Ali Martinez, there were over $19.7 billion inflows into Bitcoin and Ethereum on December 14. The figure reminded us of the high money inflow seen exactly three years ago, just before Bitcoin rose from $18,000 to $65,000. If historical patterns repeat, the largest cryptocurrency could potentially follow a trajectory similar to the 2020 cycle, reaching new highs.
Additionally, Greek.live revealed that #BTC options dominated amid the new mid-week rally, accounting for 50 percent of all volume. 50 percent of the block trades in the options market actively purchased options that will expire on December 29, 2023. Although the option expiring on December 29 was significantly below average, one giant whale in particular was seen choosing to take a long position at the end of the year in the bullish market.
Bullish Outlook in the Cryptocurrency Market
Bitcoin's current strong rally has slowed somewhat as short-term investors turn to profit-taking. This triggered the third sharpest selling event of 2023. Analysis by on-chain data platform Glassnode noted that Bitcoin has entered a short-term fatigue phase after rising to a yearly high of $44,500. However, the fact that the BTC supply on cryptocurrency exchanges is decreasing reflects the sensitivity of investors to protect their assets and the decreasing desire to sell.
Many market commentators, who have recently made optimistic price predictions for Bitcoin, state that they expect the largest cryptocurrency to exceed the range of 42 thousand to 45 thousand dollars by the end of next week. Moreover, they say that after this point, there is no significant obstacle to the price up to 63 thousand dollars and they expect the price to rise to this level.
With all this said, Arthur Hayes, co-founder and former CEO of cryptocurrency exchange BitMEX, reiterated his previous prediction that Bitcoin's price would eventually reach $1 million, and continues to link this to broader economic shifts that are devaluing national currencies.
