Bitcoin (BTC) shook off recent whispers of weakness and regained momentum on Wednesday, topping $44,000 and hitting a four-week high as the top crypto asset approaches its vaunted $45,000 level. . This bullish stance was fueled by a confluence of factors, from a resurgence in wealth accumulation by major investors to record highs in the U.S. stock market and unexpected regulatory changes by Thailand.
Bitcoin soars amid whale activity
Bitcoin started the day hovering around $42,700, but quickly gained momentum and reached a peak of $44,300, its highest price since January 12th. This 2.5% rise in 24 hours outpaced the broader crypto market’s 1.6% rise and showed Bitcoin’s renewed vigor. Ether (ETH) and Cardano (ADA) saw slight gains, but Bitcoin clearly stole the show.
What triggered this intense comeback? Bitfinex analysts initially pointed to increased miner selling as a potential cause of the recent price decline. However, the story reversed as the whale, the mysterious owner of a huge Bitcoin stash, began gobbling up the digital gold.
Cryptocurrency detective Ali Martinez analyzed data from Glassnode and revealed a multi-month high of 73 wallets holding more than 1,000 Bitcoins (approximately $44 million each). This whale activity signaled a new vote of confidence in Bitcoin’s long-term potential.
— Ali (@ali_charts) February 7, 2024
Adding fuel to the fire was the record performance of US stock indexes. The S&P 500, Dow Jones, and Nasdaq Composite all hit record highs, creating a positive ripple effect that boosted riskier assets like Bitcoin. The simultaneous spikes signaled a growing appetite for risk among investors and encouraged crypto bulls.
Bitcoin currently trading at $44,504 on the daily chart: TradingView.com
Thailand: Abolition of value-added tax promotes adoption of cryptocurrencies
Meanwhile, Thailand’s Ministry of Finance announced the removal of the 7% value added tax (VAT) on Bitcoin and virtual currency transactions.
This landmark decision places Thailand at the forefront of digital asset adoption, aiming to attract investment and establish itself as a regional hub for innovation.
This bold regulatory change injected strong optimism into an already bullish trend and demonstrated the government’s recognition of the potential of cryptocurrencies.
As Bitcoin heads toward its next move, supportive trends in technical indicators and simple moving averages suggest continued upside potential. However, investors should exercise caution as the cryptocurrency market remains inherently volatile.
Nevertheless, Wednesday’s surge, fueled by a variety of factors, paints a promising picture for Bitcoin’s future, with many wondering if this is the beginning of a new bull market. Only time will tell, but one thing is for sure: Bitcoin bulls are back and howling loudly.
Featured images are from Adobe Stock, charts are from TradingView