Bitcoin, the leading cryptocurrency, is currently consolidating near its previous peak as data reveals a significant number of active addresses within the current trading range. It began the week on a strong note, reaching a multi-month high of $69,500, but fell just short of the crucial $70,000 mark. The cryptocurrency is currently trading 7.37% below its all-time high of $73,737, which was achieved on March 14, 2024.
Interestingly, data from IntoTheBlock shows a high level of engagement among Bitcoin addresses near its previous all-time high, with over 320,000 active addresses interacting within this price range. Of these active addresses, approximately 220,000 have an average purchase price of $68,500. This indicates a strong support base, as many investors hold profitable positions at this level. It is worth noting that profitability remains evident across all buy ranges above $60,000, which reflects the confidence of long-term holders.
The recent surge in Bitcoin’s price can be attributed not only to retail interest but also to institutional players. Lookonchain’s data reveals that BlackRock’s iShares Bitcoin Trust (IBIT) has added 16,975 Bitcoin to its holdings, amounting to approximately $1.17 billion. This accumulation coincided with an 8% rise in Bitcoin’s price, suggesting a correlation between institutional buying activity and the recent price increase.
Further data from The Data Nerd confirms this trend, showing that Bitcoin exchange-traded funds (ETFs) accumulated a total of 32,370 BTC, equivalent to around $2.13 billion, in the last week. Among these, IBIT was the most significant buyer, followed by Fidelity Wise Origin Bitcoin Fund (FBTC), which added 5,000 BTC.
The growing confidence in Bitcoin is evident not only through institutional accumulation but also through comments made by BlackRock CEO Larry Fink. Fink emphasized the legitimacy of Bitcoin as an asset class, stating that the growth of the cryptocurrency market is driven by factors such as transparency, liquidity, and enhanced analytics rather than political influences. He further noted that Bitcoin has emerged as a new asset class, similar to gold, indicating a shift in how institutional investors approach asset allocation.
It is important to note that this content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.