Bitcoin (BTC) just broke the resistance of 49,000 USD and set a new high of over 50,000 USD in the middle of February. This is price behavior that confirms that the strength of the bulls has returned since the Bitcoin spot ETF was approved. .
Here are some of the latest updates on market reaction as BTC sets new highs.
Market sentiment returned to "extreme greed" after more than a year
Today, the Crypto Fear & Greed Index (alternative) increased to 79 points, ranking “extremely greedy”. This is the highest level of this index in more than a year. The Fear and Greed Index from CoinmarketCap still rates the market as “greedy.”
Volatility of the Crypto Fear & Greed Index. Source: alternative- Observing how the price of Bitcoin increased beyond 50,000 USD, it can be seen that the increase was quite slow, BTC took 9 days to increase from 42,000 USD to 50,000 USD, equivalent to an increase of 18%. Although prices have increased, the slow growth rate shows that there is still a lot of skepticism within market psychology.
- BTC daily volume exceeded 50,000 USD reaching nearly 35 billion USD. Although it is up from the Medium volume of $20 billion in previous days, it has not surpassed the high of more than $50 billion on the day the Bitcoin ETF was approved. The volume still lacks a significant breakthrough for BTC to complete daily candlestick increases of 15% - 20% like previous uptrends.
It seems that the effectiveness of the Bitcoin ETF is having a visible impact on the price. In 2024, Bitcoin no longer excites small investors but becomes a game for large whales .
on-chain signs show that big players are getting involved
Data from Santiment shows that behind Bitcoin's recovery in February is an increase in stablecoin Capital and the number of high-value stablecoin wallets.
Bitcoin price and stalecoin data. Source: santiment.Santiment said the Capital of the six largest stablecoins in the market (orange line) has accelerated since the beginning of the year and continued to increase even when Bitcoin price adjusted to below $40,000. Specifically, stablecoin Capital was added by more than 11 billion USD in the last 4 months, and increased by 6 billion USD in just the first month and a half of 2024.
In addition, the percentage of stablecoin supply held by whale wallets with balances greater than 5 million USD has increased sharply in the early period of the year to date, currently accounting for more than 51%. This data further strengthens the argument that BTC price is being influenced by large players rather than the FOMO wave of retail investors.
Bitcoin ETF is effectively promoting Vai in opening up new cash flows to the market
Since the approval of the Bitcoin ETF, Coinshares' cash flow statistics have shown large-range cylinder charts. But overall, inflow is still greater than outflow, showing the attraction of Bitcoin ETF.
Statistics on weekly cash flow from funds. Source: coinshares.Bitcoin accounts for 98% of inflows, Coinshares said. Attention to the U.S. spot Bitcoin ETF has attracted $1.1 billion over the past week, net of Grayscale outflows. This data once again reinforces the assertion that current Bitcoin price fluctuations are influenced by games between large funds.
Also Read: 3 reasons to believe that Bitcoin is still in a "bull market"
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