Bitcoin single-day price surge linked to billions in USDC inflow

The Bitcoin (BTC) terms roseate to a caller six-month precocious of $24,800 connected February 16, registering a double-digit surge of 15%. 

The prolific single-day Bitcoin terms surge took galore by surprise, fixed February has been historically bearish for the apical cryptocurrency. BTC terms roseate by $1,820 successful a azygous day, making it the biggest greenish time for the apical cryptocurrency successful six months.

One-Day Bitcoin terms chart. Source: Tradingview

Many radical attributed the BTC terms surge to a fig of factors, including a emergence successful dollar worth and declining inflation. On-chain information indicates the existent terms momentum tin beryllium traced backmost to a mysterious money that started pouring wealth into the crypto marketplace connected Feb. 10.

According to data shared by Lookonchain, astir $1.6 cardinal successful organization funds person flowed into the crypto marketplace implicit the past six days. The bulk of the $1.6 cardinal money flowed successful the signifier of stablecoins, particularly Circle-issued USD Coin (USDC). The proprietor of the funds archetypal withdrew their USDC from Circle and past sent it to assorted exchanges.

USDC withdrawal from Circle. Source: Lookonchain

There were 3 notable wallets whose funds were traced from Circle to assorted exchanges. First, a wallet code starting with “0x308F" withdrew 155 cardinal USDC from Circle and transferred to exchanges since Feb 10. The 2nd wallet code starting with "0xad6e" withdrew 397 cardinal USDC from Circle and sent it to assorted exchanges, and a 3rd wallet starting with “0x3356” withdrew 953.6 cardinal USDC from Circle and transferred to exchanges successful the aforesaid clip frame.

Wallets moving funds from Circle to exchanges. Source: Lookonchain

The Bitcoin terms surge besides comes conscionable days aft the apical cryptocurrency deed its first-ever play decease cross. The decease transverse appears connected a illustration erstwhile an asset’s short-term moving average, usually the 50-day, crosses beneath its semipermanent moving average, usually the 200-day. Despite the bearish quality of the pattern, the decease transverse has been followed by above-average short-term returns successful caller years.

The crypto assemblage reacted successful antithetic ways, with Bitcoin proponents calling it the commencement of another bull run. Samson Mow said the “BTC terms is inactive beneath the 200 WMA which is 25k. Bitcoin trading beneath the 200 WMA is an anomaly.” In each of its large marketplace cycles, Bitcoin's terms historically bottoms retired astir the 200-week moving average. A fewer others called the caller terms surge a carnivore trap portion warning that ample players are cashing out.