BTC increased to 20.000 dollars

 Why did Bitcoin (BTC) rise to $21,000? Bull rally or bull trap?

Bitcoin price rose above $20,000 for the first time since the FTX crash in November 2022. Thus, FTX returned to pre-crisis levels. What is the main reason for this rise? A true bull rally or a bull trap?

Why did Bitcoin (BTC) rise above $20,000? Bull rally or bull trap?

Bitcoin (BTC) price has rallied 23 percent in the past week. Thus, the week closed with a bullish outlook. The leading cryptocurrency started Monday, trading at $21,152 with a 2% rise. Of course, we can say that there are many factors behind this rise. However, market analysis platform Santiment thinks that the main factor behind the recent pump is Bitcoin whales.

According to reports, the number of addresses holding between 100 and 1,000 BTC in their account has increased by 416 in the last eight weeks alone.

After the Bitcoin price surge in the past week, the leading cryptocurrency has returned to pre-FTX crash levels. However, this rise was successful in one respect. Confidence in the market and decentralized technology has begun to return. Moreover, the total cryptocurrency market cap has also crossed the critical threshold, surpassing $1 trillion.

On-chain analytics company Glassnode also reported that Short-Term Investors (SVMs) have experienced their most lucrative period since April last year. Glassnode says:

“In all of the previous three rises, the share of SVM assets in the profitable region was above 50 percent. After the current price rally, we can say that more than 70.5 percent of all recently acquired BTC has turned green. This shows that a large amount of coins have changed hands in recent months.”