Key Points
- Bitcoin (BTC) is testing the $72K support level, with bullish sentiment influenced by increased demand from whale investors.
- US spot Bitcoin ETFs have seen a net cash inflow of over $5.5 billion in the past month, potentially surpassing Satoshi Nakamoto’s holdings.
Bitcoin (BTC) has been hovering around the $72K support level over the last couple of days, following a rally that almost reached its previous all-time high.
The leading cryptocurrency, with a fully diluted market cap of approximately $1.51 trillion and a daily trading volume of around 42 billion, has experienced a surge in demand from large-scale investors.
Bullish Sentiment Returns
For the first time since March, Bitcoin’s daily Relative Strength Index (RSI) has exceeded the 70 percent mark, indicating a resurgence of bullish sentiment.
From a technical perspective, Bitcoin appears to be on the verge of entering the much-anticipated parabolic phase of the macro bull cycle.
After seven months of bearish sentiment, Bitcoin has gained significant bullish momentum.
In order to confirm the start of a parabolic trend, Bitcoin’s price must consistently close above the resistance range between $71K and $73K and convert it into a support level.
This bullish sentiment is expected to continue in the short term, driven by significant news from the United States.
The US 2024 elections will conclude next week, with pro-crypto candidates, including Donald Trump, showing higher approval ratings.
Additionally, the Federal Reserve is expected to announce another interest rate cut next week to bolster the country’s economic outlook.
Whale Investors Continue to Drive Demand
The demand for Bitcoin from whale investors has significantly increased over the past year compared to previous crypto bull cycles.
On-chain data analysis reveals that the supply of Bitcoin on centralized exchanges has dropped from over 2.7 million to less than 2.3 million in the last seven months, driven by the approval of spot BTC ETFs in the US.
In the last four weeks, US spot Bitcoin ETFs have seen a net cash inflow of more than $5.5 billion, led by BlackRock’s IBIT.
On October 30, US spot Bitcoin ETFs registered a net cash inflow of over $893 million.
BlackRock’s IBIT bought Bitcoins worth over $872 million, bringing its total assets to over $30 billion.
If BlackRock’s IBIT continues to acquire Bitcoin at the current rate, the US spot Bitcoin ETFs will surpass Satoshi Nakamoto’s holdings of about 1.1 million in the coming days.
Meanwhile, MicroStrategy Inc (NASDAQ: MSTR) plans to raise $42 billion through a $21 billion ATM equity offering and another $21 billion in fixed-income securities.
MicroStrategy, which currently holds over 252K BTCs, plans to reinforce its Bitcoin strategy in the near future.
