Bitcoin and Ethereum fuel broader market rebound as sentiment gradually shifts.
Key Takeaways
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What’s driving the price of Bitcoin and Ethereum?
Bitcoin and Ethereum pumped by more than 2% on the day following massive institutional and whale purchases.
Will this sustain broader market strength?
The broader crypto market reflected the bounce, rising by a percent. Its sustainability depends on continued capital inflow into the digital assets.
The last 24 hours have seen the whole of the crypto market bounce by 1%, with Bitcoin [BTC] and Ethereum [ETH] leading. The pair surged by over 2%, regaining previously lost key price levels.
With only a day left until the last quarter of the year begins, sentiment is starting to shift. Whales and institutions have set the tone after almost two weeks of market correction across most of the coins.
What happened in crypto today!
The shift in sentiment in the last 24 hours has resulted from several factors. SEC chair, Paul Atkins, affirmed his stance on making crypto his number one priority to fuel innovation in the United States.
This induced confidence among crypto enthusiasts at a time the market was struggling.
Institutions and whales were also loading up more BTC and ETH. Bitcoin Spot ETFs saw $518M in inflows, which is 4.6K BTC. ETH broke its 5-day ETF outflow streak as it received $546M in capital injection.
Fidelity bought $299 million worth of BTC and $202 million worth of ETH, as per Whale Insider.
Michael Saylor’s Strategy (formerly MicroStrategy) added over $20M BTC, taking the firm’s holdings to slightly more than 3% of Bitcoin’s total supply.
Source: Arkham/
BlackRock (IBIT) also purchased $154M in BTC. On top of that, IBIT dethroned Deribit as the largest BTC options venue, with its Open Interest (OI) at $38 billion against $32 billion.
For Ethereum, whales were closing short positions as they reverted to accumulation.
The market rebounded, resulting in over $1.58M in losses for one whale, as per Lookonchain data. On buying, a new wallet by BitMine added $107M ETH. A whale also added $21M in ETH from the OKX exchange.
Price analysis of BTC and ETH
On the charts, Bitcoin rose above $110,000, with the price reaching $114,000 at the time of writing. However, the BTC was seeing some rejection, with Crypto Tony predicting a pullback to $113,000.
Looking ahead, price needed to break above $115K for a continued surge. If prices fail to stay above $110K, they could retest lower levels.
Source: CryptoTony/X
Ethereum also reclaimed the key support level at $4,000 that had been lost.
Price briefly dipped below this mark and was now targeting the resistance at $4,250, which would allow for further upside. If the altcoin failed to stay above $4,250, the drop could be repeated.
Next: Accumulation season? Bitcoin holds, altcoins get ready for what’s next
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