Why is Bitcoin price up today?

Let’s delve into the factors influencing Bitcoin’s price movement today.

Bitcoin Whales Increase Accumulation Recent insights from Bitfinex indicate that the challenges faced by BTC in the past month stemmed from heightened outflows from miner reserves. Bitfinex analysts suggest that miners were either offloading their Bitcoin holdings or utilizing them to secure funds ahead of the halving event, which is anticipated to substantially decrease their revenues.

CryptoQuant’s weekly report mentions a reduction in selling pressure as miners opt to hold onto their reserves despite the dwindling profits from Bitcoin network fees.

Concurrently, there’s been a surge in whale accumulation of BTC. Data provided by Glassnode reveals a 3.6% increase in Bitcoin wallets holding more than 1,000 BTC, rising from 1,992 wallets on Jan. 19 to 2,064 by Feb. 6.

Moreover, market intelligence firm Santiment highlights a notable uptick in daily active addresses (DAA), climbing from 760,450 on Jan. 21 to over 907,040 by Feb. 7.

This resurgence in whale accumulation and network activity may be attributed to growing optimism surrounding BTC’s price in anticipation of the upcoming halving event.

U.S. Stock Market Records New Highs The U.S. stock market has exhibited robust performance since mid-October, signaling support for risk assets such as Bitcoin and other cryptocurrencies. Major stock indices on Wall Street have seen substantial gains in recent days, with the S&P reaching a record high of $4,995 on Wednesday, Feb. 7.

Similarly, the Dow Jones Industrial Average approached its all-time high, closing at 38,677.36 on Feb. 7, marking a 0.40% increase.

The Nasdaq also surged, hitting a record high of 17,796 a few hours into trading on Feb. 8, with further upward momentum observed at the time of writing.

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The rally in U.S. equities has coincided with Bitcoin’s price movement, evidenced by the positive correlation between NAS 100 and BTC.

This strengthening correlation between U.S. stocks and Bitcoin aligns with shifting market expectations regarding interest rates. The recent hawkish stance adopted by the Federal Open Market Committee (FOMC) during its meeting on Jan. 30, which dismissed the possibility of an interest rate cut in March, has fueled investor interest in risk assets like stocks and cryptocurrencies.

Surge in Bitcoin Short Liquidations Bitcoin’s ascent beyond the $45,000 threshold triggered a wave of liquidations for leveraged positions.

Fahad Faqeeh, the founder of HZM Coin, noted a surge in short liquidations, amounting to approximately $115 million over the last 24 hours, as Bitcoin’s price surpassed $45,000.

Data from CoinGlass reveals that short liquidations for BTC amounted to $22.7 million on the day, with the figure escalating alongside the price surge. Overall, short liquidations across the crypto market surpassed $122.7 million.