Over 48,000 Bitcoin, valued at more than $4.5 billion, have been withdrawn from exchanges in the past week, signaling a potential shift in market dynamics.
As Bitcoin hovers near a critical level, many investors are closely monitoring the 50-day moving average (MA). A sustained close above this benchmark could confirm bullish momentum and signal the end of the current correction.
#Bitcoin $BTC remains at a critical point. This might just be a retest of the 50-day MA before a potential move lower. A sustained close above the 50-day MA is essential to signal the end of the correction and confirm bullish momentum. pic.twitter.com/ppfEjfoJkc
— Ali (@ali_charts) January 3, 2025
Profit-Taking on Binance Rises
On Binance, profit-taking appears to be increasing, as traders holding long Bitcoin positions dropped significantly from 66.33% to 56.85% within the last 24 hours. This trend reflects growing caution among investors amid market uncertainty.
https://twitter.com/ali_charts/status/1875036615447380253?t=SMjwweRd_WbktZm82l28kw&s=19
MicroStrategy’s Bold Bitcoin Play
In 2024, MicroStrategy solidified its position as a Bitcoin giant, acquiring 178,704 BTC for over $15 billion. Remarkably, 84% of these purchases occurred in Q4 as Bitcoin approached the $100,000 mark. Michael Saylor’s strategic moves not only helped stabilize Bitcoin’s price but also inspired institutions and even central banks to adopt the cryptocurrency.
https://twitter.com/kyledoops/status/1875195442297987568?t=udigPSh_DfeN6tWXODO4lQ&s=19
ETF Impact on Bitcoin Supply
ETFs are transforming Bitcoin’s supply dynamics, acting as custodians while influencing exchange balances and miner wallets. BlackRock’s iShares Bitcoin Trust (IBIT) saw a record outflow of $332.6 million (-3,413 BTC) on January 2, 2025. Despite this, BlackRock reported cumulative 2024 inflows of $37.2 billion for its Bitcoin ETF and $3.53 billion for its Ethereum ETF.
https://twitter.com/spotonchain/status/1875093676541808717?t=0QBfrY8jSstmBnw7TbA9-A&s=19
Market Data Snapshot
On January 2, the Bitcoin spot ETF market experienced a total net outflow of $242 million. BlackRock’s IBIT led the outflows with $332 million, while Bitwise’s ETF saw a net inflow of $48.3 million, and Fidelity’s ETF recorded $36.2 million in inflows.
https://twitter.com/WuBlockchain/status/1875078446210310368?t=DZAnINjBsrhWNZVa6LnxRA&s=19
Conclusion: A Transforming Market
As Bitcoin continues its journey toward becoming the ultimate store of value, institutional actions, ETF trends, and investor sentiment will play crucial roles in shaping its trajectory.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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