Why Bitcoin (BTC) Price Surged Above $20K? Bull Run Or Bull Trap?

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The post Why Bitcoin (BTC) Price Surged Above $20K? Bull Run Or Bull Trap? appeared first on Coinpedia Fintech News

Bitcoin price rallied over 23 percent in the past seven days to close the weekly bar on bullish sentiment. As of Monday, the top digital asset traded around $21,152.82, up 2 percent in the past 24 hours, according to our latest crypto price oracles. While there are so many factors that could have led to the recent crypto pump, market intelligence platform Santiment believes Bitcoin whales are the core contributors.

Reportedly, about 416 more Bitcoin addresses hold between 100 to 1,000 BTC in the past eight weeks alone.

Following the recent crypto pump, Bitcoin price has regained pre-FTX levels, thus restoring confidence in decentralized technology. Moreover, the total crypto market capitalization topped $1 trillion on Monday according to data from Coingecko.

Onchain analytics platform Glassnode highlighted that Short-Term Holders (STH) have recorded their most profitable trades since April last year.

In all three prior breakouts, STH supply in profit reached above 50% of their holdings.

In response to the current price rally, over 70.5% of all recently acquired $BTC is back in the green.

This demonstrates that a large volume of coins changed hands over recent months. pic.twitter.com/coFDqwktpZ

— glassnode (@glassnode) January 13, 2023

With Bitcoin’s price around $21k in the past three days, analysts believe the worst days may be gone with possibilities of multi-quarterly consolidation before retesting ATHs and moving to price discovery regions.

As such, crypto-related stocks have rallied together with the Bitcoin market in the past few weeks. For instance, according to market data provided by MarketWatch, Coinbase Global Inc. (NASDAQ: COIN) and Marathon Digital Holdings Inc. (NASDAQ: MARA) shares are up approximately 50 percent and 87 percent respectively in the past five days.

The total value locked on decentralized financial platforms has risen by a factor of 2 percent in the past few days to $45.45 billion. Ethereum (ETH) network remains the undisputed smart contract DeFi ecosystem with a TVL of about $27.28 billion.

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