The top stablecoins issuers have significantly heightened their minting process, thus increasing the overall purchasing power for Bitcoin and other crypto assets.
Bitcoin (BTC) price surged over 4 percent in the past 24 hours to reach a daily high of about $61,361 on August 20. The notable Bitcoin price rebound from the crucial support level of around $58k reduced the overall crowd’s fear of further crypto capitulation. Furthermore, historical data shows that August and September are not the best months for the entire crypto industry, especially after the Bitcoin halvings.
Bitcoin’s fear and greed index surged from 28 percent to around 30 percent, suggesting reduced fear of further selloff, following the ongoing crypto rebound.
Top Reasons Why Bitcoin Price Surged Today
As a globally traded commodity, Bitcoin has significantly benefited from the poor monetary policies around the world, which most often leads to high inflation. Furthermore, Bitcoin is a deflationary commodity asset, through its halving events programmed to happen after every four years.
Nonetheless, Bitcoin price has shown a high correlation with major global stock indexes, as shown by the August 5 crash that impacted almost all financial sectors. Earlier today, Japan’s Nikkei 225 led other major stock indexes in a bullish recovery, which was also influenced by the ongoing Gold’s bullish rally.
As a result, experts believe the crypto industry would have followed the stock and gold-led bullish pattern.
Today’s crypto rally was also heavily influenced by the notable rise in demand from institutional investors. According to on-chain data analysis provided by Santiment, Bitcoin whales holding between 100 and 1k coins added 94.7k BTCs in the past six weeks, thus currently owning over 3.9 million units.
🐳 Bitcoin’s whales, specifically wallets that hold between 100-1K BTC, have accumulated 94.7K more coins in the last 6 weeks. As price uncertainty has shaken many traders out of crypto, key stakeholders are loading up. pic.twitter.com/hrhlVrNqNU
— Santiment (@santimentfeed) August 19, 2024
For instance, Metaplanet Inc. (Tokyo: 3350) announced earlier today that it had completed the acquisition of 57.273 Bitcoins, worth approximately $3.4 million, thus currently holding 360.368 BTC units.
A different whale was spotted making a purchase of 347 Bitcoins from Binance, worth over $16 million, and currently 1,953 BTC units.
Meanwhile, the US spot Bitcoin ETFs registered a net cash inflow of $125 million led by Fidelity’s FBTC.
Midterm BTC Price Prediction
Bitcoin price is not yet out of the woods despite today’s rebound above $60k. From a technical standpoint, the flagship coin must consistently close above the 50 and 200 Moving Averages (MAs), following their recent death-cross, to invalidate further correction ahead.
I still think #BTC dominance will go higher from here.
ALT/BTC pairs are still above the lower part of their range and should at least fall to those levels IMHO. pic.twitter.com/raxNnNqA8Y
— Benjamin Cowen (@intocryptoverse) August 19, 2024
According to a reputable crypto analyst Benjamin Cowen, Bitcoin dominance will continue to rise against the altcoin industry in the near term and possibly reach 60 percent. In this regard, Bitcoin price could continue to lead the altcoin industry in a bullish outlook, and potentially reach its all-time high in the near term.
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