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Why is the price of Bitcoin rising today?
The Bitcoin market saw a rapid recovery today after a period of bearish trading around $65,000. The market capitalization rose to $1.3 trillion, marking a notable 24-hour gain of nearly 1.5%. As BTC prices have risen from a low of $65,000 to over $66,400, the sudden increase has many investors wondering the reasons for this turnaround and whether Bitcoin’s recovery will continue.
MicroStrategy adds more Bitcoin
MicroStrategy, a Nasdaq-listed software company 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, worth nearly $15 billion.
This growing investment in Bitcoin has increased 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 today launched its first Bitcoin (BTC) exchange-traded fund (ETF), responding to growing global demand for convenient cryptocurrency investments. The VanEck Bitcoin ETF (VBTC) has debuted on the Australian Securities Exchange (ASX), which controls 90% of the country’s stock market. The exchange gave the green light to listing the ETF earlier in the week.
VBTC opened at A$20.06 ($13.4) and rose 1% on 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 US-listed ETF on Cboe.
The growing acceptance of Bitcoin globally, from Hong Kong to the United States and now Australia, has increased institutional interest in BTC accumulation. This increase in demand contributed to today’s price rebound.
Bitcoin Faces Whale Accumulation
The recent ups and downs in the price of Bitcoin have presented an opportunity for large BTC holders. Many investors capitalize on market declines to maximize their profits by strategically purchasing assets. With this sentiment in mind, and considering the long-term bullish view on the price of Bitcoin, numerous smart whales see the recent dip as an opportunity to buy.
To know more: Bitcoin Whale Makes $395 Million Buys: Should You Buy the Dip?
According to blockchain analytics platform Lookonchain, a whale recently purchased an impressive $395 million worth of Bitcoin (BTC). Previously, during the 2022 bear market, this whale acquired Bitcoin worth $794 million.
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 a year and a half.
The whale’s recent takeover of Bitcoin near its decline indicates a strong level of support for the asset. This accumulation has also boosted the confidence of other investors, driven by the whale’s track record, leading to an increase in buying interest.
Traders remain fearful amid the $65,000 consolidation
With prices fluctuating between $65,000 and $66,000, bears are vigorously defending a strong rally. As a result, they pushed the price towards $64,500 in the last few minutes, triggering a 1.3% drop in one hour.
Read also: Bitcoin Price Prediction: Support Levels Fall as Price Struggles to Stabilize Above 66K
Recent data shows highly negative sentiment among the crowd towards BTC, marking a fourth consecutive week of fear, uncertainty and doubt (FUD).
With the increase in FUD surrounding BTC, we could see continued selling pressure around the $66,000 mark until Bitcoin reaches a clear breakout.