Bitcoin Jumps to $70K as Crypto Market Breaks Out

News Background

Bitcoin whales have resumed buying. According to CryptoQuant, over the past 60 days, large holders have acquired around 43,000 BTC, worth approximately $2.75 billion. Medium-sized holders have also begun actively buying the asset.

The leading cryptocurrency may be nearing the end of its bearish phase, as on-chain metrics show the first signs of a recovery in spot demand, CryptoQuant notes.

Two out of the three conditions necessary for a full-fledged recovery of BTC have already been met, according to Bitfinex Alpha. Expectations regarding the Fed’s interest rate have improved, and financial conditions remain relatively accommodative. However, there has not yet been a capital outflow from traditional markets into cryptocurrencies.

Bitcoin is showing signs of being in the late stages of a downtrend, but it is still too early to say that a bottom has been formed, according to VanEck’s assessment based on an analysis of 12 indicators.

BlackRock maintains a positive view on the role of Bitcoin in investment portfolios following a fall of more than 50% from its October high. Analysts attributed the sell-off to deleveraging and capital reallocation, rather than a fundamental change in the investment case for the leading cryptocurrency.