Bitcoin single-day worth surge linked to billions in USDC influx


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The Bitcoin (BTC) worth rose to a brand new six-month excessive of $24,800 on February 16, registering a double-digit surge of 15%. 

The prolific single-day Bitcoin worth surge took many abruptly, given February has been traditionally bearish for the highest cryptocurrency. BTC worth rose by $1,820 in a single day, making it the largest inexperienced day for the highest cryptocurrency in six months.

One-Day Bitcoin worth chart. Supply: Tradingview

Many individuals attributed the BTC worth surge to a lot of elements, together with an increase in greenback worth and declining inflation. On-chain information signifies the present worth momentum could be traced again to a mysterious fund that began pouring cash into the crypto market on Feb. 10.

In keeping with data shared by Lookonchain, almost $1.6 billion in institutional funds have flowed into the crypto market over the previous six days. The vast majority of the $1.6 billion fund flowed within the type of stablecoins, particularly Circle-issued USD Coin (USDC). The proprietor of the funds first withdrew their USDC from Circle after which despatched it to varied exchanges.

USDC withdrawal from Circle. Supply: Lookonchain

There have been three notable wallets whose funds had been traced from Circle to varied exchanges. First, a pockets handle beginning with “0x308F” withdrew 155 million USDC from Circle and transferred to exchanges since Feb 10. The second pockets handle beginning with “0xad6e” withdrew 397 million USDC from Circle and despatched it to varied exchanges, and a 3rd pockets beginning with “0x3356” withdrew 953.6 million USDC from Circle and transferred to exchanges in the identical time-frame.

Wallets shifting funds from Circle to exchanges. Supply: Lookonchain

The Bitcoin worth surge additionally comes simply days after the highest cryptocurrency hit its first-ever weekly death cross. The loss of life cross seems on a chart when an asset’s short-term shifting common, often the 50-day, crosses under its long-term shifting common, often the 200-day. Regardless of the bearish nature of the sample, the loss of life cross has been adopted by above-average short-term returns lately.

The crypto group reacted in numerous methods, with Bitcoin proponents calling it the beginning of another bull run. Samson Mow said the “BTC worth remains to be under the 200 WMA which is 25k. Bitcoin buying and selling under the 200 WMA is an anomaly.” In every of its main market cycles, Bitcoin’s worth traditionally bottoms out across the 200-week shifting common. A number of others called the latest worth surge a bear lure whereas warning that giant gamers are cashing out.