Renowned for developing the Bollinger Bands indicator, John Bollinger recently took to the X social media platform, formerly Twitter, to deliver an optimistic outlook on Bitcoin amidst its current market sell-off. Bollinger expressed confidence that the ongoing downward trend in Bitcoin prices would soon come to a halt.
Bitcoin, the world’s leading cryptocurrency, experienced a noteworthy bullish reversal on Friday, posting a 5.52% gain and surpassing the $42,000 mark. Despite a subsequent dip to $41,429 overnight, Bitcoin witnessed a resurgence, reaching the $41,700 zone at the time of this report. Notably, since Tuesday, Feb. 23, Bitcoin has demonstrated a substantial increase of 7.86%, climbing from the $38,705 price level.
This recent volatility in Bitcoin prices followed a sell-off by traders and investors, triggered by the American Securities and Exchange Commission’s approval of spot Bitcoin ETF issuers in mid-January. The green light allowed these issuers, including prominent names like BlackRock, Fidelity, VanEck, Ark Invest, and other Wall Street hedge funds, to trade their eagerly anticipated exchange traded funds (ETFs) tracking the spot price of Bitcoin.
However, the Grayscale Bitcoin Trust spot ETF faced challenges, with clients withdrawing significant amounts of Bitcoin as the mandatory lock-up period ended. In contrast, other ETF issuers continued accumulating substantial Bitcoin holdings in preparation for their ETF launches.
In the last 24 hours, nearly $1 billion worth of Bitcoin has been transferred to Coinbase Institutional in four large transactions by anonymous whales. Simultaneously, a comparable amount of Bitcoin was withdrawn from the platform in 13 transfers, each involving approximately 1,400 BTC. This heightened activity among Bitcoin whales coincided with the cryptocurrency’s upward movement.
