Bitcoin Price Surges to $101K Amid Increased Whale Activity
Bitcoin (BTC) price increased over 5 percent in the past 24 hours, trading around $101K on December 12. The coin retested a daily close of approximately $101,961, indicating a potential bullish breakout towards a new all-time high.
Since the beginning of the year, Bitcoin has gained significant bullish momentum, suggesting ongoing price discovery and control by bulls. Analysts propose various models to estimate potential price peaks in upcoming months, particularly as traders anticipate strategic Bitcoin reserves from the forthcoming Trump administration.
Bitcoin Whales Continue to Make Huge Moves
On-chain data from Coinglass shows a sharp decline in Bitcoin supply on centralized exchanges (CEXs), decreasing nearly 120K to around 2.23 million in the last 30 days, primarily driven by Coinbase Pro. This decline reflects increasing long-term bullish sentiment among investors despite midterm market consolidation. CryptoQuant reports that Bitcoin investment products have attracted an average of $80 billion monthly this year, surpassing cash inflows seen over the past 15 years.
#Bitcoin is attracting $80 billion every month.
Nearly half of the capital that has entered the Bitcoin market over the past 15 years was added this year.
If you don’t understand what this means, you still don’t understand Bitcoin. pic.twitter.com/7qvk8tUzlu
— Ki Young Ju (@ki_young_ju) December 12, 2024
The US spot BTC ETFs have seen net cash inflows exceeding $4.2 billion over ten consecutive days. BlackRock’s IBIT and Fidelity’s FBTC have significantly contributed to the total cumulative net inflows of $34.5 billion since the US SEC's historic approval.
Market Picture
Institutional demand for Bitcoin is expected to remain strong as nation-states consider adopting strategic BTC reserves. US officials recognize Bitcoin as digital gold, potentially aiding states in addressing national debts. BlackRock’s IBIT has surpassed its gold ETF in market value within its first year, indicating robust institutional interest.
However, Bitcoin dominance is declining as altcoins gain traction, particularly during an altseason led by Ethereum (ETH). Increased speculation among FOMO traders suggests anticipation of a parabolic rally for altcoins.