bitcoin finally broke above $38,500 once again after trading lower for a couple of days. This bitcoin-news/bitcoin-whales-ready-to-push-price-above-40000-data-throws-clues/” rel=”nofollow noopener” target=”_blank”>latest jump in price It may come as a surprise to many, but the factors behind it suggest it was already brewing. So here are three reasons that drove bitcoin price above $38,500.
MicroStrategy makes a big bet on bitcoin
For about three years now, Michael Saylor's MicroStrategy has been buying bitcoin and has already spent billions of dollars so far. However, even with its already huge reserve, the company is not slowing down its purchase of the cryptocurrency whose price has increased over the past year.
Thursday, November 30 bitcoin-news/microstrategy-boosts-bitcoin-holdings-with-590-million-purchase-totaling-174530-btc/” rel=”nofollow noopener” target=”_blank”>Saylor revealed that the company had doubled down in his bet on bitcoin once again. According to the post, the company had purchased $593 million worth of bitcoin, which was equivalent to 16,130 btc.
This continued accumulation by the company has renewed interest from investors who are quickly returning to the market. The large MicroStrategy purchase offer has been one of the main factors driving the price of bitcoin.
Whales take on btc
MicroStrategy is not the only large entity that has been bidding heavily on bitcoin. Others reportedly bitcoin/dormant-bitcoin-whales-rally/” rel=”nofollow noopener” target=”_blank”>Whales have joined the action, buying hundreds of millions of btc in a very short time and reducing the supply available on the market.
One particular whale bought over 10,000 btc worth around $460 million. He bitcoin-news/bitcoin-whales-ramp-selling-btc-decline-32000/” rel=”nofollow noopener” target=”_blank”>whale wallet which had been relatively inactive, had purchased this huge stash of bitcoin only in November. Given the purchase of MicroStrategy in addition to the bitcoin/bitcoin-whale-addresses-30000/” rel=”nofollow noopener” target=”_blank”>Whales By buying supply, he helped push the price above $38,000 once again.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/3-reasons-why-Bitcoin-price-is-trading-above-38500" alt="Tradingview.com bitcoin Price Chart” width=”2650″ height=”1530″/>
btc bulls seize control | Source: BTCUSD on Tradingview.com
Greed takes over the market
Amid the fray, investor sentiment has seen one of the most impressive improvements. Sentiment has returned to extreme greed after the crypto/crypto-fear-greed-index-drops-to-one-month-low-heres-what-it-means/” rel=”nofollow noopener” target=”_blank”>Fear and Greed Index showed a crypto/fear-and-greed-index/” rel=”nofollow noopener” target=”_blank”>score of 71. The index that uses a score from 1 to 100 indicates how investors feel about the market.
A score of 1 to 24 is called extreme fear, where investors are very distrustful of the market. From 25 to 46 is fear, one step below extreme fear, while from 46 to 53 is known as neutral territory. Then from 54 to 74 is greed, while from 75 to 100 is extreme greed.
When the index is in extreme greed, it means that investor confidence in the market has reached its highest levels. However, reaching extreme greed has also coincided with a market crash.
Currently, the price of bitcoin has surpassed $38,300 and continues to show bullish trends. If this trend continues, then the digital asset could surpass the $40,000 level before the month ends.
Featured image from CoinTribune, chart from Tradingview.com
