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Bitcoin Price Analysis: BTC Tepid After Brief Spike Past $98,000

Bitcoin Price Analysis: BTC Tepid After Brief Spike Past $98,000

Table of Contents

  1. Barclays Discloses $131 Million BlackRock ETF Position
  2. Dormant Bitcoin (BTC) Wallet Reactivates After 11 Years
  3. Abu Dhabi’s Sovereign Wealth Fund Reveals Bitcoin ETF Investment
  4. Bitcoin (BTC) Price Analysis

Bitcoin (BTC) registered a jump to an intraday high of $98,929 after it emerged that one of Abu Dhabi’s sovereign wealth fund holds $436 million in Bitcoin ETF holdings, according to a filing with the United States Securities and Exchange Commission (SEC).

BTC has struggled to build momentum as ETF outflows and altcoin dominance impact investor sentiment. If the price remains bearish, a drop below $95,000-$96,000 cannot be ruled out.

Barclays Discloses $131 Million BlackRock ETF Position

Barclays has become the latest financial institution to jump on the Bitcoin ETF bandwagon. The banking giant has reported a new position in BlackRock’s iShares Bitcoin Trust (IBIT) in its latest filing with the United States Securities and Exchange Commission (SEC). According to the filing, Barclays holds 2,473,064 shares of IBIT, valued at $131 million, as of December 31. The bank invested in the ETF during the fourth quarter between October and December, coinciding with the post-election surge in BTC prices. Barclay’s move mirrors a growing trend of institutional adoption of crypto-related products, with Goldman Sachs and JP Morgan also making substantial adoptions in Bitcoin ETFs.

The SEC’s approval of spot Bitcoin ETFs by the SEC has made it easier for institutions to gain exposure to BTC while sidestepping volatility and regulatory concerns surrounding the direct ownership of the asset. For example, Goldman Sachs reported a 121% jump in Bitcoin ETF holdings, bringing its total stake to $1.57 billion. Meanwhile, JP Morgan also reported an increase in its BTC fund exposure in its latest

Dormant Bitcoin (BTC) Wallet Reactivates After 11 Years

Blockchain tracking service Whale Alert has flagged a dormant Bitcoin address that has been reactivated after eleven years. The wallet was last used in 2014, four years after Satoshi Nakamoto’s disappearance. The wallet contains 300 BTC, valued at $29,368,562. Old wallets have been reawakening throughout November and December as BTC began to surge and cross $100,000. BTC surged to an all-time high on January 20 following Donald Trump’s inauguration. The ancient whales are coming back to life after an extended period of dormancy as they lock in profits.

Earlier this week, 14,000 BTC were moved after remaining inactive for seven to ten years. However, on-chain data showed the BTC was not transferred to any crypto exchange, indicating no immediate plans for a sale.

Abu Dhabi’s Sovereign Wealth Fund Reveals Bitcoin ETF Investment

Mubadala Investment Company, one of Abu Dhabi’s sovereign wealth funds, has made a substantial investment of $436 million in Bitcoin ETFs. This makes it one of the largest allocations to Bitcoin-related financial products by a sovereign fund to date. The wealth fund confirmed the investment in a regulatory filing with the SEC and encompasses shares in BlackRock’s iShares Bitcoin Trust (IBIT), the leading spot Bitcoin ETF with $56 billion in assets under management. The move coincides with BlackRock obtaining a license to operate within Abu Dhabi, highlighting growing institutional interest in the asset in the region. The investment represents 0.14% of Mubadala’s assets under management.

Bitcoin (BTC) Price Analysis

Bitcoin (BTC) is marginally up during the ongoing session as it continues its recent struggles to build momentum. The flagship cryptocurrency registered a sharp jump to $98,662 following news of Abu Dhabi’s sovereign wealth fund’s investment into spot Bitcoin ETFs. However, the price registered a sharp decline, dropping to $96,901 before moving to its current level of $97,592. Higher-than-expected inflation numbers have put BTC prices under intense scrutiny. BTC has stabilized above $97,000 over the past two sessions and is currently trading around the $97,600 price level.

Bitcoin dominance has also declined substantially, dropping to a 14-day low as altcoins and ETFs gain traction. The Securities and Exchange Commission acknowledged Grayscale’s filings for Dogecoin (DOGE) and Ripple (XRP) ETFs, triggering notable rallies in the prices of both assets. Meanwhile, spot Bitcoin ETFs saw outflows worth $650 million over the trading days spanning February 11 and February 15. These outflows have also dampened price sentiment and momentum around BTC.

BTC has found relative stability below the $100,000 price level amid growing market volatility. A correction also saw BTC test its support levels before bouncing back. BTC has been unable to push above $100,000 and continued to trade sideways, oscillating between $94,000 and $98,000. One analyst noted that BTC has been trading within this range for nearly two weeks and is poised to make a big move out of this consolidation zone. However, he cautioned investors that the direction it could take was almost impossible to predict.

BTC experienced significant volatility almost most of last week, dropping below the 50-day SMA on Tuesday. The price continued to decline, falling to $96,668 on Wednesday before attempting to recover on Thursday, rising to an intraday high of $99,237. However, selling pressure overwhelmed buyers, and the price fell back to $96,641. BTC briefly crossed $100,000 on Friday, reaching an intraday high of $100,222. However, it lost momentum after reaching this level and dropped to $96,634. Price action was muted over the weekend as BTC registered a marginal increase on Saturday and a marginal decline on Sunday to settle at $96,526.

Source: TradingView

Price action picked up on Monday as BTC registered an increase of 0.98% and moved to $97,468. However, it fell back in the red on Tuesday, dropping nearly 2% to $95,800. BTC fell to an intraday low of $94,118 on Wednesday as selling pressure intensified. However, it rebounded from this level, rising 2.17% and settling at $97,881. Sellers returned to the market on Thursday as the price fell 1.24% to $96,663. The price surged to an intraday high of $98,929 before settling at $97,566, an increase of nearly 1%. The current session sees BTC marginally up as it struggles to build momentum.

BTC must regain the $100,000 price level for bullish sentiment to return. A break above this level could see BTC push to $105,000 and beyond, potentially setting a new all-time high. However, if sellers regain control, it could drop below $96,000. If the price drops below this level, it could lead to a deeper correction that could see the price drop to $90,000. The MACD and RSI are still bearish, indicating sellers have the upper hand.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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