Bitcoin (BTC) is consolidating near its recent multi-month high, bolstered by significant activity from over 320,000 active addresses.
Data from IntoTheBlock reveals that a strong base of support exists at these levels, with 220,000 addresses holding BTC at an average price of $68,500. This engagement signals substantial interest.
As Bitcoin consolidates near its old all-time high, more than 320,000 active addresses are interacting within this price range.
Notably, 220,000 of these addresses have an average acquisition price around $68.5k, suggesting a strong level of interest and potential support at… pic.twitter.com/GVwPVUhDYV
— IntoTheBlock (@intotheblock) October 21, 2024
After hitting $69,500 earlier this week, Bitcoin has pulled back slightly but remains 7.37% below its all-time high of $73,737, reached in March 2024. BTC’s price currently trades at $66,949, indicating a 2.3% decline in the past day.
Bitcoin 24-Hour Price Chart | Source: CoinGecko
Institutional Buying Boosts Bitcoin’s Rally
Meanwhile, investor sentiment continues to be positive, particularly among long-term holders who maintain profitable positions in the $60,000+ range. Institutional buyers have been instrumental in the current price surge.
According to Lookonchain data, BlackRock’s iShares Bitcoin Trust (IBIT) added nearly 17,000 BTC to its holdings this past week, representing approximately $1.17 billion in value. The accumulation coincided with an 8% increase in BTC’s price, hinting at a correlation between institutional purchases and market movements.
Last week, #Blackrock bought a total of 16,975 $BTC($1.17B).
And the price of $BTC rose by more than 8% in the past week! pic.twitter.com/ZRdZeYzIam
— Lookonchain (@lookonchain) October 21, 2024
Bitcoin ETFs’ Key Role
A further cause of the coin’s price gains comes from exchange-traded funds (ETFs), which amassed 32,370 BTC, worth over $2 billion, during the last seven days. BlackRock led the pack with the largest acquisition, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC), which acquired 5,000 BTC.
This wave of institutional accumulation underscores growing confidence in BTC as a maturing asset class. BlackRock CEO Larry Fink further bolstered this sentiment, likening the coin’s market positioning to gold.
He noted that Bitcoin’s success stems from factors like liquidity, transparency, and improved analytics rather than political or economic events. His view reinforces the belief that BTC has evolved beyond a speculative asset and is now a serious option for institutional investors to add to their portfolios.
Hashrate Hits Record Peak
Meanwhile, the network’s fundamentals remain strong. On October 21, 2024, its hashrate — the total computing power securing the network — reached a new all-time high, showcasing the asset’s growing security and increasing mining difficulty.
Bitcoin Network Hashrate Chart | Source: BitInfoCharts
While market participants eagerly await a potential breakout above this psychological barrier, the increased hashrate and institutional backing are positive signals of a long-term bullish run for BTC.
