Bitcoin hits $46,000 level ahead of Chinese new year
Bitcoin initiated trading at the $42,000 mark, influenced by a hawkish stance from the Federal Reserve and capital outflows from Grayscale. However, the cryptocurrency experienced an upward trend as substantial investor accumulation took place. Presently, Bitcoin is surpassing the $46,000 level. According to reports from Glassnode, there has been a 3.6% increase in Bitcoin wallets holding over 1,000 BTC from January 19th to February 6th.
The heightened activity among large investors suggests growing confidence in the value of Bitcoin, particularly as the halving event approaches. Additionally, historical trends indicate that Bitcoin often sees gains during the Chinese New Year period, coinciding with the S&P 500 reaching historic highs. Bulls in the market are now eyeing the $50,000 level as the next significant psychological resistance, fuelled by positive sentiment. On the other hand, Ethereum is also trading in line with Bitcoin, experiencing gains. Most altcoins have gained decent amounts this week.
In an intriguing development, newly launched Bitcoin Exchange-traded Funds (ETFs), excluding Grayscale's GBTC, added nearly 5,000 tokens to their holdings on Wednesday. These ETFs now collectively own more than 192,000 BTC, surpassing the holdings of MicroStrategy (MSTR), which stood at 190,000 at the end of January. Despite being on the market for less than a month, these funds have attracted billions of dollars from investors seeking exposure to Bitcoin without the need to directly purchase and store the
