Bitcoin (BTC) experienced a surge on Wednesday, surpassing $44,000 to reach a new four-week high, buoyed by increased accumulation by large holders and record highs in U.S. equity indices.
The leading cryptocurrency by market value climbed from $42,700 earlier in the day to reach as high as $44,300, marking its highest price since January 12, following the launch of spot bitcoin exchange-traded funds (ETFs) in the U.S.
Bitcoin’s 2.5% gain over the past 24 hours outpaced the CoinDesk 20’s 1.6% increase during the same period, with Ether (ETH) also showing upward movement, up 2.3%. Meanwhile, Cardano (ADA) experienced a slight decline of 0.4%.
Analysts at Bitfinex had previously suggested that increased selling by miners might have contributed to recent downward pressure on BTC prices. However, today saw a reversal of this trend, possibly overwhelming sellers.
Crypto analyst Ali Martinez highlighted on X that bitcoin whales, or large investors, were accumulating assets at an increased rate. The number of bitcoin wallets holding over 1,000 tokens (approximately $44 million) reached a multi-month high of 73, based on Glassnode data.
The continued rise of U.S. stock markets likely bolstered risk assets like cryptocurrencies, with the S&P 500 hitting a record high and nearing the 5,000 level. The Dow Jones Industrial Average also approached its all-time high, while the Nasdaq Composite continued its climb toward its record peak.
Concerns surrounding New York Community Bancorp (NYCB) appeared to alleviate, as shares rebounded from earlier losses and closed higher by 6.7%. The bank issued a statement late Tuesday to reassure market participants about its liquidity and deposit stability following a downgrade by rating agency Moody’s.
Ethereum’s ether (ETH) also experienced gains, crossing the $2,400 mark for the first time in two weeks, fueled by renewed optimism surrounding spot ETFs.
Earlier in the day, asset managers Ark Invest and 21Shares made amendments to their joint application, aligning it more closely with recently approved spot bitcoin ETFs, potentially preemptively addressing regulatory concerns. The updated filing also hinted at the possibility of staking some of the fund’s tokens to earn rewards.
Tokens associated with Ethereum, such as Polygon’s MATIC, Optimism’s OPT, Arbitrum’s ARB, saw gains of 2%-4%, while liquid staking protocol Lido’s LDO surged by 5%.
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