Bitcoin Wealth Isn't About Hype-It's About Time and Stacking, Expert Says

Bitcoin prices have surged above $92,000 amid increased geopolitical tension and renewed investor optimism. Analysts highlight that ETF inflows and institutional purchases have contributed to the upward movement. The U.S. military's intervention in Venezuela has further amplified volatility in both the oil and crypto markets according to market analysis.

Crypto educators argue that Bitcoin is not a speculative tool but a long-term store of value. Veteran crypto educator Davinci Jeremie emphasized that stacking and time are the keys to building wealth in Bitcoin. He criticized the idea of expecting sudden price booms to create wealth.

Large Bitcoin purchases by whales and exchanges have sparked renewed momentum in the market. In the last 10 hours, entities such as Binance, Coinbase, and Bybit have acquired over $3.5 billion worth of Bitcoin. This has led to a broad-based market rally, with most altcoins and meme tokens following suit.

Why the Move Happened

Bitcoin has been trading above its 50-day Exponential Moving Average (EMA), a sign of bullish momentum. The Moving Average Convergence Divergence (MACD) indicator has crossed above the mean line, suggesting that bulls are in control.

Institutional demand has also contributed to the recent rally. U.S. spot Bitcoin ETFs saw $459 million in inflows last week, with BlackRock's IBIT leading with $324 million. This trend reflects growing confidence in the asset class despite end-of-year price fluctuations.

The geopolitical landscape is another factor. The U.S. military's actions in Venezuela have led to speculation about a potential $17.3 trillion oil price shock, which could impact the U.S. dollar and create a favorable environment for Bitcoin.

How Markets Responded

Bitcoin's price has climbed back above $92,000, with a 0.98% daily gain and a 2.77% increase over the past seven days. The 24-hour trading volume stands at $38.54 billion.

Ethereum and XRP also show strength, with Ethereum trading above $3,100 and XRP up nearly 3% on the day. The broader crypto market has seen a surge in speculative activity, particularly in meme tokens and altcoins.

ETF flows have been a key driver of this response. Bitcoin spot ETFs recorded $459 million in inflows last week, while Ethereum ETFs saw $161 million in inflows.

What Analysts Are Watching

Technical indicators are being closely monitored. Bitcoin's 10-week and 50-week moving averages have crossed, a historical signal for potential corrections. Past instances have seen sharp declines in price, such as a 67% drop in 2014 following the same signal.

Analysts remain divided on the future direction of Bitcoin. Some see a path to $100,000, with thin order books above $95,000 suggesting potential for a retest of the $100,000 level. Others warn of a potential 50% to 60% pullback, which could bring prices to between $38,000 and $50,000.

Macroeconomic factors such as monetary policy, liquidity, and regulatory changes will play a critical role in shaping Bitcoin's trajectory. The Clarity Act and other regulatory developments could influence sentiment and trading activity.