Bitcoin hits a 22-month high at $64,000, marking a successful February. Optimism fueled by stable buying pressure from new Bitcoin spot ETFs. However, a sharp correction followed, bringing BTC to $58,700. Altcoins, notably ETH, also impacted. The market turbulence caused glitches, including Coinbase displaying zero balances. Over $250M futures liquidation in the past hour, reaching nearly $600M in the last 12 hours. Both long and short positions are affected.
Notably, this surge is not just a blip on the radar but part of a broader trend, with February witnessing an impressive 42% increase in Bitcoin’s value, the most substantial monthly gain since December 2020.
However, as Bitcoin climbed to $64,000, it encountered resistance around the $63,750 mark, leading to a partial reversal. Despite this, Analysts are bullish as BTC trades at $63,235, up 8.2% in 24 hours, with a market cap of $1.21 trillion.
Bitcoin Soars to $64,000: New Bull Run or Temporary High?
Interestingly, the latest surge in Bitcoin’s price coincides with vital on-chain metrics, signaling increased activity in the Bitcoin network. A remarkable $35.37 billion in on-chain transaction volume has been recorded, alongside the movement of over 283,000 unique tokens. The 3,661 whale transactions are particularly noteworthy, each involving $1 million or more.
Crypto analyst Ali Martinez suggests Bitcoin doesn’t seem to face any big hurdles right now, but it’s finding strong support between $54,300 and $56,200. About 903,540 addresses hold nearly 500,000 BTC in this range, showing lots of people are buying and supporting Bitcoin at these levels.
Decrypting the Government’s Bitcoin Moves
Causing Bitcoin’s rise and speculations, another event involving the US government and Bitcoin popped up. One of the wallets, suspected of holding seized Bitfinex hacker funds on behalf of the US government, initiated the transfer of around $173 million worth of Bitcoin. Similarly, another wallet containing approximately $750 million worth of Bitcoin also saw significant activity, raising questions about the government’s indirect involvement in the crypto market.
The news has toppled the crypto space with rumors regarding its potential impact on Bitcoin’s price and the motives behind the US government’s Bitcoin transactions. Some worry about likely selling pressure, while whistleblower Edward Snowden hints the US might secretly buy Bitcoin to trim its debt.
Given these developments, the cryptocurrency community is staying vigilant, carefully observing Bitcoin’s price fluctuations and analyzing the impact of government participation in the crypto market. So, what’s on the horizon for Bitcoin? Will it smash through its all-time high? Only time will tell.
