Here’s Who Has Been Driving The Bitcoin Price Recovery Above $65,000

Bitcoin is now trading above the $65,000 price level for the first time in two months, leaving the $63,000 resistance level behind. This interesting increase has seen Bitcoin increase by almost 23% from a September low of $53,400 on September 6, pushing many holders into profitability.

According to Santiment, this price action has been mostly fueled by increased activity from whales and sharks, with the on-chain analytics platform noting a huge accumulation trend among them.

Sharks And Whales Continue To Accumulate BTC

Recent shifts in market dynamics worldwide have propelled Bitcoin back to the forefront of investor portfolios since mid-September. According to data from Santiment, Bitcoin’s upward price movement has been largely supported by increased accumulation from investors. The on-chain analytics platform revealed that many wallets holding ten or more BTC have been steadily accumulating additional Bitcoin over the past six months. This consistent buying behavior has played a critical role in stabilizing and propping up the price, especially during market corrections when Bitcoin has faced downward pressure.

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Notably, these addresses have accumulated $4.08 billion worth of BTC in the past six months, and their collective holdings currently stand at 16.19 million. Santiment’s data also shows that this accumulation trend gained significant momentum starting in mid-September just after the Fed reduced the base interest rate, indicating a renewed wave of confidence among these Bitcoin investors.

Current State Of Bitcoin

As noted by NewsBTC, September has always been a crucial month for Bitcoin’s price performance in the last quarter of the year. Interestingly, what looked to be a bearish month for Bitcoin in the first two weeks has now played out as a forerunner for a potential surge in the last quarter of 2024. 

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At the time of writing, Bitcoin is trading at $65,470 and has been up by 2.6% in the past 24 hours. Institutional investors have resumed their investments in Bitcoin since the beginning of the week. This has seen spot Bitcoin funds witness consecutive days of inflows since the beginning of the week. Particularly, they received $365.7 million in net inflows in the past 24 hours.

Bitcoin has also seen a notable increase in open interest as investors pile up. According to Coinglass, the Bitcoin open interest now stands at $35.90 billion across multiple exchanges, reflecting a 3.53% increase in the past 24 hours. As Bitcoin’s price continues to attract attention from traders across the globe, the surge in open interest could act as a catalyst for further price increases. 

The next step for Bitcoin’s price is a bullish break above the July high of $70,162. Surpassing this level and keeping the momentum could open the stage for Bitcoin to easily break into new all-time highs in October. 

Featured image created with Dall.E, chart from Tradingview.com