Bitcoin’s Remarkable Rally: Surpasses $35,000 Despite Decrease in Whale Transactions
Bitcoin, the leading cryptocurrency, recently witnessed a surge above the $35,000 mark, prompting significant activity within crypto exchanges. According to data from the market intelligence platform Santiment, whale transactions involving at least $100,000 worth of BTC experienced a 7.8% decline over the past 24 hours, decreasing from 5,506 transactions to 5,077. This drop coincided with the top 13 Bitcoin miners selling 5,492 coins, surpassing the number of BTCs mined in October, as reported on Nov 7. The selloff occurred amid substantial gains in the asset’s price over the preceding three weeks.
Additionally, Santiment reported a slight decline in Bitcoin’s total open interest on all exchanges from around $7.3 billion to $7.2 billion in the past day. While the Binance funding rate for BTC indicates domination of short position holders at 0.01%, the exact amounts of short and long positions remain unclear, as per Santiment’s data.
As of the time of writing, Bitcoin is up by 0.95% in the past 24 hours, trading at around $35,300. The cryptocurrency experienced a daily local low and high of $34,545 and $35,505, respectively. Bitcoin’s market cap exceeds $689 billion, with a market dominance of 51.8%. The 24-hour trading volume rose by 42%, reaching $18.7 billion.
On a different note, Santiment’s data indicates that the BTC price-daily active addresses (DAA) divergence has declined to negative 25.89%. A divergence below zero could be interpreted as a “sell” signal, suggesting the market may be influenced by significant whales.
The surge in Bitcoin’s price has had a cascading effect on Bitcoin-related stocks, propelling them to multi-week highs. Notable performers include MicroStrategy, the largest publicly traded BTC-holding company. MicroStrategy’s stock (NASDAQ: MSTR) surged by nearly 9%, approaching the remarkable milestone of $1 billion in unrealized gains on its BTC investment.
Coinbase, a major cryptocurrency exchange, also benefited from the surge, with its stock price witnessing a notable 3.42% increase, reflecting the positive sentiment surrounding Bitcoin.
Bitcoin mining stocks have also experienced significant gains, riding the momentum of Bitcoin’s price surge. Riot Blockchain (RIOT), a U.S.-listed Bitcoin mining company, recorded an 11.69% surge, while Marathon Digital Holdings (MARA) saw a remarkable 14.6% increase. The anticipation of the upcoming Bitcoin halving event, which will reduce the mining reward from 6.25 BTC to 3.125 BTC per block, contributed to this surge.
Interestingly, Bitcoin mining stocks have not only outperformed Bitcoin in their daily price rallies but have also surpassed BTC in year-to-date gains. Companies like Cipher Mining Inc., Riot Platforms, Northern Data AG, Hut 8 Mining Corp, Iris Energy, Bitfarms, Marathon Digital, and Hive Technologies have all registered impressive growth figures, surpassing the 100% mark this year.
The intersection of Bitcoin’s price movements, the behavior of whales and miners, and the performance of associated stocks creates a dynamic landscape for investors and enthusiasts. As the cryptocurrency market continues to evolve, the interplay of these factors contributes to the intricate narrative surrounding Bitcoin and its ecosystem.