Key Points
- Bitcoin [BTC] experienced a surge, reaching a peak of $73,620 on Binance.
- Despite potential sell-offs, institutional commitment to BTC remains strong, with BlackRock notably expanding its Bitcoin holdings.
Bitcoin [BTC] is poised to make history again in 2024. This week is critical for determining BTC’s prospects.
Bitcoin’s Bullish Performance
On the 29th of October, the leading cryptocurrency surpassed the important $70,000 mark for the first time since June. It peaked at $73,620 on Binance, just over a hundred dollars short of its all-time high of $73,777.
The rally reignited bullish sentiment among investors. However, it also raised the question of whether this breakthrough would trigger a wave of profit-taking.
Potential Sell-Offs
Recent activity suggests that sell-offs could be on the horizon. A whale wallet holding 749 BTC became active after remaining dormant for 12 years following Bitcoin’s surge past $71,000. This whale originally accumulated BTC back in 2012 and has now transferred out 159 BTC.
Another significant player potentially preparing to cash out is the Government of Bhutan. Crypto wallets linked to Bhutan’s Royal Government moved $66.55 million worth of BTC to Binance.
Institutional Commitment to Bitcoin
Despite potential sell-offs, BlackRock remains committed to Bitcoin. The asset management giant purchased another 4,528 BTC on 28th October. In the past two weeks, BlackRock significantly expanded its Bitcoin holdings.
The latest purchase brought its holdings to 408,253 BTC, signalling strong institutional interest in the asset.
Retail Investors’ Activity
Despite Bitcoin’s impressive price performance, retail investors seem to be less active. Google Trends data revealed that search interest for “Bitcoin” was low last week. Retail participation was also overshadowed by larger investors.
Bitcoin transfer activity among retail investors remained relatively low. Historically, low transfer activity by retail investors often precedes price rallies for Bitcoin.
As Bitcoin approaches record highs, the interplay between whales, institutions, and retail could shape its short-term trajectory. This may set the stage for either unprecedented highs or a profit-taking pause.