Bitcoin has staged a notable recovery, climbing back toward the $61,000 mark within the past day. The cryptocurrency, which had been languishing below $60,000, saw a significant price surge of over 4% in just 24 hours. At its peak, Bitcoin briefly exceeded $61,400 before experiencing a slight pullback, settling around $60,800—a considerable gain compared to its previous position.
Several factors could be driving this rally. On-chain data suggests that recent positive developments may have played a role. According to analytics firm Santiment, Bitcoin investors holding between 100 and 1,000 BTC—often referred to as “sharks”—have made substantial purchasing moves over the past six weeks. As of the latest data, these investors collectively hold about 3.97 million tokens, with 94,700 coins acquired within just six weeks. This accumulation signals confidence among large-scale investors that Bitcoin would rebound from its earlier struggles.
Another contributing factor is the rising supply of Tether (USDT), a stablecoin commonly used by investors to avoid the volatility of cryptocurrencies like Bitcoin. Analyst Ali Martinez noted a significant uptick in Tether’s supply recently. Investors often park their capital in stablecoins to later reinvest in more volatile assets like Bitcoin, and an increase in Tether’s supply typically indicates growing purchasing power waiting to re-enter the crypto market.
These shifts could be due to two primary processes: capital rotation from Bitcoin and other cryptocurrencies into stablecoins or an influx of new capital into the market. The former scenario involves investors temporarily moving away from volatile assets, with the intention of returning later. The latter suggests fresh interest and new money entering the crypto space, which would be entirely bullish for Bitcoin. In reality, both processes likely occurred, with new capital inflows potentially playing a significant role in Bitcoin’s recent rebound.
As the cryptocurrency climbs back to its recent highs, these underlying trends could continue to influence its trajectory.
