Why is Bitcoin Price Up Today?

Why is Bitcoin Price Up Today?

The post Why is Bitcoin Price Up Today? appeared first on Coinpedia Fintech News

Bitcoin’s market saw a quick recovery today following a period of bearish trading near $65,000. The market cap surged to $1.3 trillion, marking a notable 24-hour gain of almost 1.5%. As BTC prices jumped from a low of $65,000 to surpass $66,400, the sudden increase left many investors wondering about the reasons behind this turnaround and whether Bitcoin’s recovery will continue.

MicroStrategy Adds More Bitcoin

MicroStrategy, a software company listed on Nasdaq and the largest corporate holder of bitcoin (BTC), announced today that it has purchased an additional 11,931 BTC for $786 million.

Led by Executive Chairman Michael Saylor, the company had already amassed 214,400 bitcoins by the end of April. With this latest purchase, MicroStrategy now holds a total of 226,331 bitcoins, valued at nearly $15 billion.

This growing investment in Bitcoin boosted buying pressure and played a key role in initiating today’s price recovery rally.

Australia’s First Bitcoin ETF Launches on ASX

Australia’s largest stock exchange launched its first spot Bitcoin (BTC) exchange-traded fund (ETF) today, responding to increasing global demand for convenient cryptocurrency investments. The VanEck Bitcoin ETF (VBTC) debuted on the Australian Securities Exchange (ASX), which commands 90% of the country’s equity market. The exchange greenlit the ETF listing earlier in the week.

VBTC opened at A$20.06 ($13.4) and climbed 1% throughout the day, closing with 99,791 shares traded. This ETF operates as a feeder fund, offering exposure to Bitcoin through investments in the company’s Bitcoin Trust (HODL), a U.S.-listed ETF on Cboe.

Bitcoin’s growing acceptance globally, from Hong Kong to the US and now Australia, has raised the institutional interest in accumulating BTC. This surge in demand has contributed to today’s price rebound.

Bitcoin Faces Whale Accumulation

Recent ups and downs in Bitcoin’s price have presented an opportunity for large BTC holders. Many investors capitalize on market decline to maximize their profits by strategically buying assets. With this sentiment in mind, and considering the bullish long-term view on Bitcoin’s price, numerous smart whales view the recent downturn as a chance to buy in.

Read more: Bitcoin Whale Makes $395 Million Purchase: Should You Buy the Dip?

According to blockchain analytics platform Lookonchain, a whale recently bought an impressive $395 million worth of Bitcoin (BTC). Previously, during the 2022 bear market, this whale had acquired $794 million worth of Bitcoin.

By selling 37,000 BTC at an average price of $46,800 between 2023 and 2024, the whale generated over $1 billion ($1.74 billion). This marks the first purchase by this whale in 1.5 years.

The whale’s recent acquisition of Bitcoin near its dip indicates a strong support level for the asset. This accumulation has also boosted other investors’ confidence, driven by the whale’s track record, leading to increased buying interest.

Traders Remain in Fear Amid $65K Consolidation

With prices hovering between $65,000 and $66,000, bears are strongly defending a strong surge. As a result, they pushed the price toward $64.5K in recent minutes, triggering 1.3% decline in one hour.

Also read: Bitcoin Price Prediction: Support Levels Drop as Price Struggles To Stabilize Above 66K

Recent data shows a highly negative sentiment among the crowd towards BTC, marking a fourth straight week of fear, uncertainty, and doubt (FUD).

With increasing FUD surrounding BTC, we may witness ongoing selling pressure around the $66K mark until Bitcoin achieves a clear breakout.