"Everyone must have been happy in the morning, I hope this fun can last forever."
The king of cryptocurrency Bitcoin (BTC) at the opening of the Asian market session this morning surprised when its price quickly broke through $71,872 leaving investors curious about the underlying factors driving the climb.
It should be noted that the realized capitalization of new whales has continued to increase since January 2024, so here it can be seen that there is an accumulation of activity by large investors that triggered the increase in the price of BTC.
On the other hand, the capitalization realized for the old whales which remained stable also shows that long-term investors are still holding BTC and this means that they are very confident in the future value of the digital asset.
It's also worth noting that BTC ETF Grayscale finally managed to see small inflows throughout the week after a long time of outflows of $16.6 billion while Hong Kong and Canada saw outflows of $83 million and $17 million respectively.
A recovery across the crypto market including BTC was sparked last week again after the release of Consumer Price Index (CPI) data was found to be lower than forecast then annual institutional filings showed attractive participation in spot BTC ETFs from the state pension board of Wisconsin.
However, it should be noted that the strategy of the Federal Reserve (Fed) of the United States (US) to manage inflation and avoid recession can affect liquidity which can affect the attractiveness of limited assets such as BTC.
As of this writing, BTC price has surged by 7.48% to $71,151 in the last 24 hours with a market capitalization of over $1 trillion and a 13.15% increase over the last week.
