Today, Bitcoin, the largest cryptocurrency by market value, surpassed the $45,000 mark, reaching a notable $45,899 level. Investors’ optimism about the potential approval of spot Bitcoin Exchange Traded Funds (ETFs) in the US played a substantial role in driving this notable surge.
Several factors, including the influx of funds into publicly traded Bitcoin mining companies and the unexpected rise of the Ordinals protocol, which has become a more prominent aspect of the cryptocurrency’s network activity, have contributed to the upward movement of Bitcoin ($BTC).
$1B Profit As Bitcoin Hits New High
According to insights from an on-chain data analyst, a group of Smart Whales reaped over $1 billion in profit as Bitcoin reached a new yearly high today.
$1B profit on $BTC!
We spot a group of Smart Whales earning more than $1B profit as $BTC records a new ATH of $45400.
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First, they accumulated 21528 $BTC ($400M) from #binance at $18582 from Oct to Nov 2022.
Notably, this is the period when FTX crashed, and $BTC was under… pic.twitter.com/9A33GJ9xvM
— The Data Nerd (@OnchainDataNerd) January 2, 2024
Their strategy involved accumulating 21,528 BTC ($400 million) from Binance at $18,582 from October to November 2022, a period that coincided with the FTX crash and Bitcoin trading below $20,000. Subsequently, they sold a total of 12,391 BTC at the peak price in 2023, realizing a total profit of $105.4 million.
Currently, they hold a total of 26,287 BTC ($1.19 billion) in two main wallets, with an unrealized profit of $654.3 million (+121%).
As indicated by Ali’s chart on X, Bitcoin’s Open Interest is approaching $11.5 billion, signaling the potential entry into a crowded trade zone.
With #Bitcoin's Open Interest nearing $11.5 billion, the market may be entering a crowded trade zone.
This surge in open interest, while indicating increased $BTC trading activity, could also signal market volatility. Going long #BTC now bears risks, especially if the market… pic.twitter.com/kgzxhhnaCb
— Ali (@ali_charts) January 2, 2024
$50,000 Bitcoin Price Target For January
Matrixport anticipates that Bitcoin could surge to $50,000 in January, driven by factors such as expected approvals of Bitcoin spot ETFs, institutional buying, supply shortages, and historical trends. There’s also the possibility of entering an altcoin season with funding rates reaching +66%.
🚨 NEWS: #Matrixport predicts that #Bitcoin will surge to $50,000 in January due to factors like #BitcoinETF approvals, institutional investment, supply shortages, historical trends, and the potential for an #altcoin season with funding rates of +66%. 🔥🚀
— CoinEcho (@mycoinecho) January 2, 2024
The cryptocurrency market continues to be dynamic, influenced by a combination of market sentiment, regulatory developments, and broader economic factors.
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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