Who is the main force driving Bitcoin to surge above $71,000 today?

Today, Bitcoin hit a new record, successfully reclaiming the long-awaited $70,000 level, a threshold that it has struggled to recover over the past four months.
Not only has Bitcoin re-entered the $70,000 region, but it is rapidly approaching its all-time high. Specifically, it has reached an intraday high of $71,475 and continues to maintain its upward momentum. Now, Bitcoin is only 3.5% away from reaching its highest point of $73,750.
Bitcoin’s rebound was felt across the crypto market. Global markets rose 4.56% in the past day to $2.4 trillion. This reflects an inflow of approximately $112.808 billion into the market over the past 24 hours. In addition, the market trading volume surged by 89.41% and now stands at $100.99 billion.
Robust crypto markets feel the pinch amid Bitcoin rally
This unexpected development prompted market participants to consider the factors behind it. CryptoQuant, an analytics platform, attributes Bitcoin’s upward trend to massive trading activity, especially from large traders on the Binance exchange.
How Binance’s whales drive Bitcoin prices
In an analysis today, CryptoQuant market watcher Mignolet noted that whales on the Binance exchange have been participating in the market’s Asian trading hours since Oct. 14.
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The activity affected data on price differences between Coinbase and Binance, which tracks two major exchanges used by U.S. and international traders. As of today, the spread between the two is decreasing, showing a “negative premium,” despite the rise in Bitcoin prices.
Mignolet warned against interpreting this as a drop in U.S. demand. In fact, U.S.-based Bitcoin spot ETFs have seen massive inflows since Oct. 14, with inflows of around 47,000 BTC, equivalent to $3.34 billion based on Bitcoin’s current market cap of over $71,000.
Additionally, as The Crypto Basic reported last week, inflows into U.S. Bitcoin ETFs recently hit a six-month high.
Mignolet further noted that CPG data closely tracks demand for ETFs, as most ETF products use Coinbase. Typically, high U.S. demand would drive CPGs positive, but a negative premium suggests that whales on the Binance exchange are driving the price of Bitcoin. In contrast, demand in the United States remains strong but is not fully reflected in the price on Coinbase.
Basically, the current Bitcoin price is mainly affected by the whales on the Binance exchange and is strongly supported by stable capital inflows from the United States.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.