Bitcoin’s record-breaking surge to $103,656 on Coinbase marks a pivotal milestone, achieved amidst a wave of cryptocurrency price rallies that began a month ago on U.S. election night.
But how did we arrive at this six-figure landmark?
⛏️📉 Bitcoin's collective mining balances have been dropping since April, 2024. However, this latest drop of 85,503 BTC in just 48 hours is the most extreme we've seen since late February (2 weeks before the then $73K all-time high). Note that these wallets have NOT been… pic.twitter.com/gTQPoS7IzC
— Santiment (@santimentfeed) December 6, 2024
The driving force behind this surge is the intensified activity of “whales” and “sharks” (wallets holding 10+ BTC). Over the past seven weeks, these investors have amassed an additional 103,960 BTC—a pace of accumulation not seen since March-June 2021.
Historically, this group’s behavior has played a crucial role in shaping Bitcoin’s long-term price trajectory, making it clear that cryptocurrency remains the domain of large-scale players.
📊 Bitcoin's new all-time high of ~$103,656 on @coinbase was a six-figure milestone many were anticipating following the massive crypto-wide price surges that began on US election night exactly a month ago. How did we get here?
No matter what cryptocurrency asset you may have… pic.twitter.com/QMT4K92MK2
— Santiment (@santimentfeed) December 5, 2024
Meanwhile, Bitcoin mining wallets have seen a steady decline in balances since April 2024, with a dramatic drop of 85,503 BTC in just 48 hours. Interestingly, these wallets have shown little correlation with price movements this year, while non-mining whales and sharks continue to accumulate. For now, this trend offers a mixed signal for Bitcoin’s immediate future.
Bitcoin’s Price Volatility
During Bitcoin’s rally past $100,000, perpetual funding rates on derivatives platforms spiked to 0.062% before cooling off, although they remain elevated. This indicates lingering leverage in the market, which could influence price volatility in the short term.
During the #Bitcoin rally above $100K, the hourly perpetual funding rates spiked to around 0.062% before sharply declining. Still, rates remain high compared to earlier this week, reflecting lingering leverage in the system.
See the live chart: https://t.co/cwaez0VRiA pic.twitter.com/EvKRdg5Qa3
— glassnode (@glassnode) December 6, 2024
The most critical support level for Bitcoin now stands at $96,870, where 1.45 million addresses acquired 1.42 million BTC. As long as this demand zone holds, Bitcoin’s upward momentum appears likely to persist.
The most significant support level for #Bitcoin is $96,870, where 1.45 million addresses bought 1.42 million $BTC. As long as this demand zone holds, there is a good probability that #BTC will continue marching higher. pic.twitter.com/O3F1FVjw33
— Ali (@ali_charts) December 6, 2024
Adding to the bullish sentiment, Bitcoin spot ETFs recorded six consecutive days of net inflows, totaling $767 million on December 5. BlackRock’s ETF, IBIT, led the charge with $2.5 billion in inflows over five days, including a single-day high of $771 million. This inflow signals growing institutional confidence in Bitcoin’s future potential.
Bitcoin spot ETF had a total net inflow of $767 million on December 5, marking six consecutive days of net inflow. BlackRock ETF IBIT had a total inflow of over $2.5 billion in the past five days, the most among all ETFs (including traditional and cryptocurrency ETFs). BlackRock… pic.twitter.com/WLjqKW92i0
— Wu Blockchain (@WuBlockchain) December 6, 2024
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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