Bitcoin hit a six-month high of $24,800 on Feb. 16, recording a double-digit gain of 15%.
Bitcoin’s one-day price came as a surprise to many, given that February had been a bearish period for the leading cryptocurrency. BTC is up $1,820 on the day, its strongest green day in 6 months.
Bitcoin 1-day price chart | Source: TradingView
Many have attributed BTC’s rise to a variety of factors, including rising dollar value and falling inflation. On-chain data suggests that the current price dynamics may be attributed to a mysterious fund that began pumping money into the cryptocurrency market on Feb. 12.
according to data From Lookonchain, nearly $1.6 billion in institutional money has flowed into the crypto market in the past 6 days. Most of this came from stablecoins, especially USDC, which was issued by Circle. First, the fund owner withdraws USDC from Circle, which is then sent to various exchanges.
withdrawal data central bank of the united states from the circle | source: watch chain
There are three well-known wallets for transferring funds from Circle to exchanges. First, a wallet address starting with “0x308F” withdrew 155 million USDC from Circle and transferred it to the exchange since February 10. The second wallet address starting with “0xad6e” had $397 million in USDC withdrawn from Circle. The third wallet address starting with “0x3356” withdrew 953.6 million USDC from Circle and transferred it to the exchange at the same time.
Wallet transferring funds from Circle to an exchange | Source: Lookonchain
The Bitcoin bull run comes just days after the leading cryptocurrency recorded its first weekly death cross. A death cross occurs on a chart when an asset’s short-term moving average (usually the 50-day moving average) is below its long-term moving average (usually 200). Despite the bearish nature of the pattern, death crosses have resulted in above-average short-term returns in recent years.
The crypto community has had mixed reactions to the latest bullish move. In it, Bitcoin advocates called it the start of another bull run.Samson Mew Comment:
“BTC price is still below the 200 WMA, or $25,000. Bitcoin trading below the 200 WMA is an anomaly.”
According to historical data, in every major market cycle, prices have bottomed near the 200-week WMA.
In contrast, other call The recent bull market has been a bear trap while warning that big players are cashing in.
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As reported by Cointelegraph