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Bitcoin (BTC) price crossed the $50,000 mark for the first time since spot Bitcoin exchange-traded funds (ETFs) were approved in the United States. The flagship coin reached a fresh 24-month high of around $50,380 on Tuesday during the early Asian session, following a 4 percent spike in the past 24 hours.
As a result, more than $74 million from Bitcoin derivatives has been liquidated in the past 24 hours. The notable uptick in Bitcoin value has rejuvenated the overall bullish sentiments despite the recent calls for a market correction. Furthermore, the 30-day Market Value to Realized Value (MVRV) ratio issued a cautionary warning after it exceeded 11.50 percent for the first time in two years.
Top Reasons Why Bitcoin Price Gained
Heightened Institutional Demand for Bitcoin
On Monday, Digital Currency Group (DGC) announced its valuation doubled to $4.4 billion by the end of the fourth quarter and managed to repay over $1 billion in debts. With the company’s Grayscale Bitcoin Trust (GBTC) being the leading spot ETF issuer, experts anticipate further declined outflows. Meanwhile, the several spot Bitcoin ETF issuers – excluding Grayscale’s GBTC – now hold more than 216k Bitcoins, more than MicroStrategy’s holdings of 190k.
Increased Whale Buying Pressure
According to on-chain data analysis provided by market intelligence firm Santiment, Bitcoin whales have been on a buying spree in the past few weeks, acquiring over 140,000 Bitcoins worth more than $6.2 billion. Notably, more than 70 percent of Bitcoin supply is held by long-term investors who have not moved the coins in more than a year.
Pre-halving Rally Economics
The fourth Bitcoin halving is expected to happen in less than 70 days, thus triggering historical speculation. Ideally, Bitcoin price could continue on a bullish trend until the next significant resistance around $57k, when a possible correction could begin.