Two major factors that could be driving this price increase are increasing whale activity and a robust network.
Despite some shock waves and significant turbulence on the way up, Bitcoin managed to break through several barriers and eventually climbed above $100,000 for the first time in history in December. More volatility followed in the weeks that followed, including a price drop to less than $90,000 last Monday, but the asset’s bull run ultimately continued and it recorded a new all-time high of over $109,000 on Inauguration Day.
Although Trump did not mention the cryptocurrency during his speech, which was followed by an expected correction, the BTC price managed to stay within six-figure territory and is now thousands away from a new peak. Moreover, positive developments on US soil and perhaps the promise of a more favorable regulatory environment have encouraged whales to return with massive price purchases.
Data from Santiment shows that such large market participants have accumulated over 22,000 BTC (worth over $2.2 billion) in just 72 hours. Such significant purchases dry up the available supply and reduce immediate selling pressure, potentially leading to new price highs.
The second factor listed by the popular analyst is the overall health of the network. The aforementioned whale activity, along with the growing number of daily active addresses, has led to a more stable network, which could also act as a catalyst for “potential price growth,” Martinez claims.
The element of instability here is Trump’s upcoming actions (or lack thereof). We saw that his failure to mention cryptocurrency during his speech led to an immediate price decline. Therefore, it is safe to assume that if he fails to deliver on at least some of his many promises in favor of the cryptocurrency, the BTC price growth may be stopped prematurely.
💸💲🧠 Get up to 5020 USDT as a welcome bonus and an additional 1025 USDT by using this referral on Bybit
$25 welcome bonus to all new Binance users.
Lost password? No problem! Enter your email address to confirm your account.