Coinspeaker
Feb 11, 2025
8 0

Bitcoin Price Rebounds Above $98K as Crypto Cash Rotates to Altcoins

2 min

Bitcoin price rallied nearly 2% over the past two days, trading above $98K as of February 11, 2024. It established support around $96.4K and aims to surpass the $109K mark.

Key points include:

  • The price discovery phase is linked to the recent re-election of US President Donald Trump.
  • Consistent closing above $100K is necessary to avoid a selloff toward $91K.

Bitcoin Price Influences

Institutional demand has increased, with notable activities such as:

  • Strategy (NASDAQ: MSTR) resumed Bitcoin accumulation, acquiring 7,633 BTC in the past week.
  • Metaplanet plans to raise ¥4 billion through bonds for further Bitcoin purchases.
  • OTC Bitcoin supply decreased from 480K in September 2024 to about 146K today.

In contrast, centralized exchanges saw an increase in supply by approximately 31K coins to 2.22 million, influenced by cash outflows from US spot Bitcoin ETFs. Net cash outflow reached about $186 million, primarily from Fidelity’s FBTC and Grayscale’s GBTC.

Altcoin Market Trends

Bullish sentiment in Bitcoin has extended to altcoins, with layer one coins like Cardano, Toncoin, and Ethereum experiencing similar upticks. Regulatory developments in the US have boosted institutional interest.

Noteworthy actions include:

  • Binance and the US SEC filed to pause litigation for 60 days.
  • Grayscale Investments applied to list a spot Cardano ETF on the NYSE.

Many altcoins remain undervalued, leading to increased interest from whale investors anticipating an altcoin rally.