Bitcoin hits highest level since 2021

By Samer Hasn

Bitcoin was able to penetrate and reach the highest levels that we have not seen since November of 2021, by exceeding the level of $57,000.

Today’s Bitcoin rally came after increased whale activity as well as more encouraging data for spot ETFs.

On Friday, 26,200 bitcoins were transferred to an anonymous wallet, equivalent to $1.3 billion, and were purchased at a price of $51,000, according to Whale Alert. This massive activity by one of the whales was part of an increasing series of Bitcoin transfers to digital wallets not linked to crypto exchanges, an indication of increasing holdings for the purpose of long-term investment.

Bitcoin spot ETFs also continue to show more positive signs as outflows from the Grayscale Bitcoin Trust (GBTC) continue to decline to the lowest level since its conversion to a spot fund.

While the outflows from GBTC are approaching zero before turning into positive flows, which will serve as the end last of the chapter of the most important obstacles to the progress of Bitcoin after the launch of spot ETFs.

While GBTC may face difficulty in attracting positive flows in a significant manner like the major competing ETFs, with the highest fee among its peers at 1.5%, in addition to the lack of a premium on the net asset value, which would constitute an arbitrage opportunity.

This bullish Bitcoin rally led to more massive liquidations of short positions in cryptocurrencies. From the early morning hours until 8:00 a.m. GMT, about $100 million worth of short positions were liquidated, while Bitcoin had a share of approximately 60 million, according to data provided by CoinGlass.

As for yesterday, it witnessed the largest liquidation of short positions this year with more than 176 million dollars, of which Bitcoin acquired about 97 million.

I believe that nothing may hinder the positive sentiment among Bitcoin investors now, especially with the fading of outflows from GBTC in conjunction with the approaching halving event next April and more institutional adoption of Bitcoin, which was reflected in the sudden rises in trading volumes during the past week for spot ETFs, while prices corrections appear are like buying opportunities.