Bitcoin’s price is up a notable 3.2% Wednesday morning, with analysts suggesting that the asset may have found a price floor.
Bitcoin isn’t the only cryptocurrency benefiting from the upswing. Ethereum climbed 5.8%, and major altcoins joined the trend: Cardano gained 8.3%, Solana 3.5%, Dogecoin 4.3%, Shiba Inu 4.1%, BNB 2.4%, and XRP 6.2%.
Bitcoin’s recovery coincides with increased activity from short-term holders.
According to James Van Straten, senior analyst at CoinDesk, approximately $8 billion worth of Bitcoin recently moved to exchanges—indicating that the market may be nearing its bottom.
“In notional terms, this is the highest number on record. When this cohort typically sends $2 billion or more worth of tokens to exchanges at a loss, it generally signals a local bottom,” Van Straten explained. He added that this behavior aligns with the end of bear market cycles.
Van Straten also noted that exchange inflows have historically marked moments when selling pressure peaks, paving the way for a price rebound.
The increased exchange activity may suggest that traders are taking advantage of recent volatility, either securing profits or entering new positions in anticipation of a potential bull market.
The Broader Context
Beyond the day-to-day technical moves, Bitcoin bulls are banking on a few longer-term headwinds. One of them is President-elect Donald Trump’s choice for Treasury Secretary.
Trump has tapped Scott Bessent, a renowned hedge fund manager with a strong pro-crypto stance, for the role.
Bessent, who previously served as chief investment officer for billionaire George Soros and later founded Key Square Capital Management, has been a vocal supporter of blockchain technology and digital currencies.
This nomination represents a significant shift from the Biden administration’s more cautious and regulatory-heavy approach under Janet Yellen.
Should Bessent be confirmed, he could introduce policies aimed at providing greater clarity on crypto regulations—potentially bringing Bitcoin and other digital assets closer to the financial mainstream.