Why Crypto Market is Up Today? Bitcoin Breaks $64K as Whales Drive Recovery

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The cryptocurrency market edged higher in the past 24 hours, with Bitcoin’s (BTC) price reaching a range of about $64,755. The fear of further crypto capitulation has significantly subsided in recent weeks compared to the first weeks of September. Bitcoin’s fear and greed index hovered around 59 percent, signaling greed, as Bitcoin price rallied above $64k earlier today. 

Similarly, Ethereum’s fear and greed index jumped 61 percent, signaling greed from the traders, as the instrument rallied above $2,655.

Following the gradual crypto rebound in the recent past, most altcoins have already broken out of the multi-month falling trend and signaled a potential bull run in the near term.

Major Forces that Influenced the Crypto Market Today

Rising Demand from Whale Investors

According to on-chain data analysis, deep-pocketed investors accelerated their accumulation pace in the past few days, thus resulting in the ongoing crypto rebound. In the past 24 hours, three whales have accumulated Bitcoins worth more than $270 million from the Binance exchange. 

Meanwhile, the US spot Bitcoin ETFs registered a net cash inflow of about $136 million, led by BlackRock’s IBIT. Additionally, the US spot Ether ETFs registered the highest Daily Cash inflow since August on Tuesday of about $62 million, led by BlackRock’s ETHA.

The notable cash inflows from whale investors neutralized Bitcoin miners’ $16 million selloff in the past 24 hours.

Favoring Economic Outlook

The crypto market has gradually followed the Gold and major stock indexes in a bullish outlook. The clarifying global economic outlook in the past few months has bolstered the macro bullish outlook.

Notably, major global economies have cut their respective interest rates to spur growth. For instance, the European Central Bank (ECB) has initiated several rate cuts to about 3.5 percent. The Bank of Canada (BoC) has cut its benchmark interest rate by 75 bps since June to 4.25 percent.

Last week, the Federal Reserve initiated its first interest rate cuts of 50 bps, highlighting that more are expected amid declining inflation. Earlier this week, China announced several measures to boost its economic activities, including interest rate cuts and a reduction in the bank’s requirement ratio.

Positive Regulatory Outlook in the United States 

On Tuesday, the US SEC Chair and other commissioners testified before Congress where the crypto issue was prevalent. Although the US Congress has not passed clear crypto regulatory laws, Gensler was accused of enforcing the crypto industry with archaic rules. 

Overall, it is clear that most politicians vying for elective positions in the 2024 general elections are supportive of the crypto industry.