Bitcoin (BTC) rises past $38K but the rally is ‘far from done,’ says statistician
Bitcoin broke $38,000 for the first time but many believe that the crypto's price could still rise even further.
Thu, 07 Jan 2021, 15:37 pm UTC
Bitcoin has been ceaselessly breaking records this year as the cryptocurrency even rose past $38,000 for the first time. While BTC’s price increase has already been impressive these past few days, a statistician remains bullish on the crypto and says its rally is “far from done.”
Bitcoins’s rally remains unimpeded. After establishing a new all-time high just a day ago when the crypto soared past $37,000, BTC rose once more and broke $38,000. At the time of writing, the crypto managed to maintain its momentum and is trading at $38,456 based on data from Coinmarketcap.com.
But many still believe that BTC’s rally is far from over. For instance, statistician Willy Woo expects the crypto to rise even further due to supply issues.
“Latest buying has been driven by participants who are long-term holders,” Woo said, according to Cointelegraph. “This is bullish, this rally is far from done,”
Woo was commenting on data from on-chain analytics resource Glassnode revealing that almost 80 percent of Bitcoin is illiquid. “We show that currently 14.5M BTCs are classified as illiquid, leaving only 4.2M BTC in constant circulation that are available for buying and selling,” Glassnode said.
Institutions are buying from whales which resulted in a decrease in speculative and more long-term hodling. “Over the course of 2020, a total of 1 million additional BTC have become illiquid — investors are increasingly hodling,” Glassnode analysts added. “This is bullish, and suggests that the current bull run has been (partly) driven by this emerging #Bitcoin liquidity crisis.”
Institutional demand has picked up as more firms are now including BTC in their treasury reserves. For instance, $30 billion in Bitcoin is now being held by 29 companies such as Microstrategy Inc., Galaxy Digital Holdings, and Grayscale Bitcoin Trust.
Paypal’s entry into the crypto market also had a huge impact on the crypto’s supply. The payments giant started offering its crypto services last year and now Paypal users are buying all newly-minted BTCs.
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