RecordBreaking Trading Volumes and Whale Accumulation Whats Driving Bitcoins Surge

Why is the cryptocurrency market rising?
This week, the cryptocurrency market experienced a sudden crash influenced by multiple factors, including a sell-off by Jump Trading, ETF fund flows, the U.S. presidential election, and escalating tensions in the Middle East. Bitcoin (BTC) prices even briefly fell below $50,000. Following the weekend massacre, the price of Bitcoin rebounded significantly yesterday (8th), reclaiming the $60,000 mark.
In the past 24 hours, Bitcoin has risen by 6.4%, with prices landing at $61,223; Ethereum (ETH) also surpassed $2,600, increasing by 8.8% over the same period.
Strong performance of U.S. labor market data
The rapid price recovery is closely linked to the latest labor market data from the United States. Data released by the U.S. Department of Labor on August 5 showed that for the week ending August 3, the number of first-time unemployment claims fell from 250,000 the previous week to 233,000, lower than the 240,000 expected by economists.
This data indicates that the U.S. labor market remains strong, alleviating market concerns about an economic recession and weakening expectations for a significant interest rate cut by the Federal Reserve in September.
Market leverage short liquidation
Another significant driver behind Bitcoin’s price increase comes from the liquidation of leveraged short positions in the cryptocurrency market.
In the past 24 hours, over $114 million in short positions have been liquidated, indicating a reduction in market short pressure. At the same time, the number of open contracts for Bitcoin futures also increased, rising from $26.65 billion the previous day to $27.01 billion. This suggests that the market’s risk appetite for Bitcoin is on the rise, with investors beginning to re-enter the market.
Short position: A trading strategy that involves selling first and buying later to profit from the price difference.
Open contracts: Derivative contracts that have been bought or sold but have not yet been settled. Open interest can be seen as capital still in the market.
Bitcoin whales accelerate accumulation, exchange balances reach five-year low
As the cryptocurrency market experienced a “one-week limited sale,” Bitcoin whales quickly entered the market to increase their holdings when prices fell below $50,000.
According to data from market analysis firm Santiment, wallet addresses holding 10 to 1,000 Bitcoins reached the highest trading levels since early April on August 5 and 6, indicating that these large holders took advantage of the price drop to accumulate more coins.
This is a positive signal, as the continued accumulation by large holders reflects bullish sentiment among these investors toward the cryptocurrency market.
Additionally, data from CryptoQuant shows that the balance of Bitcoin on exchanges has reached a five-year low, with only 2.68 million Bitcoins remaining. This indicates that an increasing number of investors are transferring their Bitcoins to self-custody wallets, reducing the intention to sell and anticipating that market prices will continue to rise.
Reference:
cointelegraph,
coindesk