- Bitcoin prices may touch historical heights of $50,000
- Established players deepening their pockets to pave way for cryptocurrency
Bitcoin did touch the height of $49,000 before settling at the level of $46,000 before the week ended. As per the below, the prices of bitcoin was hovering around $35,000 region which in itself was massive but now has catapulted to touch $50,000.
Reports have been suggesting that Bitcoin’s liquid supply has been constantly decreasing with an increase in demand for the cryptocurrency. The number of BTC that have not moved on-chain for an extended time period also rises.
The below chart highlights how the supply of BTC has been reducing since mid-2020 as whales and institutional investors have increased their exposure to this nascent asset class. Additional evidence of the growth of big-money players can also be found by the surge in wallets holding in excess of 1000 BTC.
As the number of large wallets grows, the number of smaller wallets has remained flat or decreased, indicating that larger players are perhaps shaving off bitcoins from the smaller players.
PayPal Expanding its Bitcoin and Altcoin Footprint
PayPal seems to enhance its participation in the cryptocurrency sector by offering its crypto services to the residents of the United Kingdom. This would be the first users outside the USA would be able to purchase crypto through the platform which should be available on PayPal by mid-2021. The step has its risks but the reward against them is also substantially large to bet on.
Other firms such as ApplePay are also entering into partnerships allowing Apple Wallet users to use their BitPay card for making purchases.
Choppy Market Conditions Impact Traditional markets
The traditional markets have faced pressure due to federal regulation probes launched into Robinhood and Reddit for possible market manipulation pertaining to recent moves witnessed such as with GameStop. Despite the downturn, all 3 major indices [NASDAQ, Dow and S&P 500] managed to climb higher and finish on positive side.
On the other hand, the cryptocurrency market continued its bullish upsurge as multiple projects saw double-digit gains and new all-time highs.
Some of the notable performances were that of Ethereum (ETH) at a height of $1,863 whilst Polkadot witnessed an increase of 21% at $29.52. The overall cryptocurrency market now stands at $1.48 trillion and Bitcoin’s dominance rate is 60.4%.
The interesting point is that cryptocurrency has managed to weather the storm of tough market conditions and continues to outperform most of the analyst estimates and reversing various technical trends. The point of stabilisation may come anytime and that would be preferable instead of the performances going downwards.
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