Bitcoin Nears $97,000 as ETFs Surge and Whale Activity Stirs Volatility

Sophia Cruz•Thursday, December 5, 2024•1 min read

After a slight downturn,

Bitcoin Nears $97,000 as ETFs Surge and Whale Activity Stirs Volatility

(BTC) has recently rallied and has captured the attention of investors as it approaches $97,000, with market dynamics reflecting optimism tempered by caution. The cryptocurrency recently peaked near $98,000, bolstered by long-term holders and reduced exchange balances. On-chain data highlights a “supply squeeze,” as fewer Bitcoin tokens remain accessible for trading, driving Institutional interest continues to play a pivotal role. Recent data shows a $676 million surge in Bitcoin ETFs in a single day, signaling increased confidence among traditional financial players. Bitcoin advocates, such as Michael Saylor of MicroStrategy, are further fueling institutional enthusiasm by promoting Bitcoin as a strategic reserve asset

However, the market still has its challenges. Whale activity remains a concern, with large-scale investors reportedly manipulating order book. Analysts observed that spoofed bids created artificial price floors, which were quickly withdrawn, introducing instability. This tactic highlights the importance of monitoring whale behavior to gauge the sustainability of Bitcoin’s price movements

Broader market conditions also influence Bitcoin’s trajectory. Economic factors, including Federal Reserve policies and employment data, add complexity to the cryptocurrency’s outlook. Recent jobless claims in the U.S. came in higher than anticipated, contributing to a mixed macroeconomic picture that could impact Bitcoin’s price performance

Despite these uncertainties, optimism remains high. The milestone of $100,000 is within reach, with institutional adoption and market sentiment providing strong support. Yet, the road ahead may be volatile, requiring investors to stay vigilant about liquidity trends and the behavior of key market participants. As Bitcoin consolidates its position, the question remains whether it can sustain its upward trajectory in the face of macroeconomic and market-specific pressures.

Check out our free forex signals

Follow the top economic events on FX Leaders economic calendar

Trade better, discover more Forex Trading Strategies

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.