Bitcoin one-day price surge linked to billions in USDC inflows
The Bitcoin (BTC) price rose to a new six-month high of $24,800 on February 16, recording a double-digit gain of 15%.
Bitcoin’s prolific one-day price rally surprised many, given February has been historically bearish for the top cryptocurrency. BTC price surged by $1,820 in a single day, making it the biggest green day for the top cryptocurrency in six months.
Many people attributed the BTC price rise to a number of factors, including a rise in dollar value and falling inflation. On-chain data indicates that current price momentum can be traced back to a mysterious fund that began pouring money into the crypto market on February 10.
In accordance data shared by Lookonchain, nearly $1.6 billion in institutional funds have flowed into the crypto market over the past six days. The majority of the $1.6 billion fund flowed in the form of stablecoins, particularly the Circle-issued USD Coin (USDC). The owner of the funds first withdrew his USDC from Circle and then sent it to various exchanges.
There were three notable wallets whose funds were traced from Circle to various exchanges. First, a wallet address starting with “0x308F” withdrew 155 million USDC from Circle and transferred to exchanges since February 10. The second wallet address starting with “0xad6e” withdrew 397 million USDC from Circle and sent it to various exchanges, and a third wallet starting with “0x3356” withdrew 953.6 million USDC from Circle and transferred it to exchanges in the same time frame.
The Bitcoin price surge also comes just days after the top cryptocurrency hit its first-ever weekly death cross. The death cross appears on a chart when an asset’s short-term moving average, usually the 50-day, crosses below its long-term moving average, usually the 200-day. Despite the bearish nature of the pattern, the death cross has been followed by above-average short-term returns in recent years.
The crypto community reacted in different ways, and Bitcoin supporters called it the start of another bull run. Samson Mow so “BTC price is still below 200 WMA which is 25k. Bitcoin trading below 200 WMA is an anomaly.” In each of its major market cycles, Bitcoin’s price historically bottoms around the 200-week moving average.A few others called the latest price rise a bear trap while warning that large players withdraw money.
