Bitcoin (BTC) shook off recent bearish whispers and roared back to life on Wednesday, clawing its way past $44,000 and marking a four-week high as the top crypto asset approaches the vaunted $45K level. This bullish charge was fueled by a potent cocktail of factors, from resurgent accumulation by major investors to record highs in US equity markets and a surprise regulatory shift from Thailand.
Bitcoin Surges Amid Whale Activity
The day began with Bitcoin hovering around $42,700, but it quickly gained momentum, reaching a peak of $44,300 – its loftiest perch since January 12th. This 2.5% surge in 24 hours outpaced the broader cryptocurrency market’s 1.6% gain, showcasing Bitcoin’s renewed vigor. While Ether (ETH) and Cardano (ADA) saw modest increases, Bitcoin clearly stole the show.
Source: CryptoQuant
What sparked this fiery comeback? Analysts at Bitfinex had initially pointed to heightened miner selling as a potential culprit for recent price dips. However, the narrative flipped as whales, those enigmatic holders of vast Bitcoin stashes, began gobbling up the digital gold.
Crypto sleuth Ali Martinez, analyzing data from Glassnode, revealed a multi-month high of 73 wallets holding over 1,000 Bitcoins (roughly $44 million each). This whale activity signaled a renewed vote of confidence in Bitcoin’s long-term potential.
#Bitcoin whales are accumulating more $BTC! Around 73 new whales now hold 1,000 #BTC or more, marking a 3.66% increase in two weeks. pic.twitter.com/VFArJYTQZl
— Ali (@ali_charts) February 7, 2024
Adding fuel to the fire were record-breaking performances by US stock indices. The S&P 500, Dow Jones, and Nasdaq Composite all flirted with all-time highs, creating a positive ripple effect that buoyed riskier assets like Bitcoin. This synchronized surge suggested a broader investor appetite for risk, emboldening cryptocurrency bulls.
Bitcoin currently trading at $44,504 on the daily chart: TradingView.com
Thailand: VAT Elimination Spurs Crypto Adoption
Meanwhile, the Finance Ministry of Thailand announced the elimination of the 7% value-added tax (VAT) on Bitcoin and cryptocurrency trading.
This groundbreaking decision positions Thailand as a frontrunner in digital asset adoption, aiming to attract investment and establish the country as a regional hub for innovation.
This bold regulatory shift injected a powerful dose of optimism into the already bullish trend, showcasing government recognition of the potential of cryptocurrencies.
As Bitcoin navigates its next move, technical indicators and the supportive trend of the Simple Moving Average suggest continued upside potential. However, the cryptocurrency market remains inherently volatile, and investors should exercise caution.
Nonetheless, Wednesday’s surge, fueled by diverse factors, paints a promising picture for Bitcoin’s future, leaving many wondering if this is the beginning of another bull run. Only time will tell, but one thing is certain: the Bitcoin bulls are back, and they’re roaring loud.
Featured image from Adobe Stock, chart from TradingView