As the market continues to swell, data has shown that big players bought into the Bitcoin dip, with heavy orders that may have encouraged the BTC pump.
The Bitcoin market is experiencing quite the trajectory as traders have continuously pumped in money, despite corrections. According to recent data, Bitcoin whales and several institutional players bought into the recent Bitcoin dip, acquiring considerably large amounts. The large purchases have stayed consistent, setting the world’s largest cryptocurrency asset for bigger wins.
According to a March 9 tweet from on-chain analysis outfit, Material Indicators, Binance sees a heavy increase in the number of Bitcoin buy orders worth at least $100,000. This upward trajectory on the world’s largest exchange platform by volume is cementing new all-time highs for the company.
During the recent dip, most of the inflow into the market was from whales and institutions. For the first time in Bitcoin’s history, purchases worth more than $100,000 were more frequent than smaller buys. The number of smaller purchases has considerably crashed since 2021 began. This development gives credence to the fact that the bull purchases are eating up asset liquidity in the market. Currently, many market players believe that the current whale purchase trajectory could cause some scarcity, however later than sooner.
The recent Bitcoin movement has also raised some concerns. Material Indicators was recently of the opinion that whales could crash prices by offloading their positions. Basically, as prices rose, prominent players could sell off their funds. According to the analytics service, this could cause another surge into $58,000, followed by a similar 25% retraction.
Bitcoin Dip and Market Movements
Recently, almost 12,000 BTC was traded on Coinbase Pro. According to analyst Lex Moskovski, 11,554 Bitcoin left Coinbase shortly before the recent surge. Describing it as a “nice coincidence,” Moskovski draws a line between the trade and the subsequent surge.
Whether or not it was caused by a Bitcoin dip, the continuous bull run is commendable as a great incentive for institutions. While these institutional players may not abandon traditional channels, there is more confidence that playing in the Bitcoin market would yield considerable returns.
Currently trading at $54,722 after a 1.44% 24-hour rise, Bitcoin seems to have found support at the $50,000 mark. According to an analysis, the king coin’s next resistance level is at $54,000. Generally, if Bitcoin maintains a push above $50k, it would be well on its way to set a new resistance at its current $58k all-time high.
Regardless, Bitcoin’s upward trajectory seems stable. Still above its 50-day volume-weighted moving average, there is a lot of optimism in the Bitcoin market.
There is also the Biden administration’s recent $1.9 trillion COVID-19 stimulus bill to consider. The stimulus bill passage is expected to be bullish for Bitcoin if history is to repeat itself. Back in March, the Trump administration paid stimulus checks to people who dumped the funds into the Bitcoin market. The recent passage could easily cause Bitcoin to retest $58,000 soon.
Bitcoin Will Significantly Underperform Altcoin Market As New Crypto Price Era Unfolds: Pantera Capital’s Dan Morehead
The founder and chief executive officer of Pantera Capital says that investors can expect altcoins to outperform Bitcoin (BTC) in the long term.
In a recent edition of Pantera’s Blockchain Letter, the head of the digital asset management firm outlines Dan Morehead’s key quotes from the SALT 2021 conference in New York. During the conference, Morehead said that even though his company has greatly profited from BTC, he emphasized that most future crypto gains will come from altcoin investments.ADVERTISEMENT
“My perspective is: Bitcoin has been amazing – Pantera Bitcoin Fund is up 67,000% since inception. However, I think the majority of future gains will be from tokens outside of Bitcoin. I know that sounds heretical to some people here, but that’s my professional opinion.”
Morehead compares the rise of Bitcoin and its competitors to that of the tech industry boom during the late 1990s.
“It’s like saying in 1998 that [the] majority of future tech gains would come from outside Microsoft.
At the time, Microsoft was worth $218 billion, Apple $3.5 billion, Amazon was $2.2 billion. Google and Facebook were zero – they didn’t even exist. In the years since Microsoft did great – it went up 10x. However, 80% of the tech gains in these five stocks came from outside Microsoft.
That’s the view I have here – I think BTC is going to go up a ton – like 10x. It’s a great investment…[but] I think the broader portfolio is going to outperform.”
At time of writing, BTC has a market cap of $1.156 trillion while all altcoins combined have a market cap of $1.327 trillion, according to CoinMarketCap.
s are now selling ‘way more’ US Dollars to buy Bitcoin
President Nayib Bukele shared this new development on Twitter based on the data acquired from El Salvador’s in-house wallet service, Chivo. President Bukele said:
“People are inserting way more USD (to buy #BTC) than what they are withdrawing from the Chivo ATMs.”
He also urged media outlets to independently confirm the above information by visiting the ATMs. President Bukele further stated that Chivo has reported 24,076 remittance requests “adding up to $3,069,761.05 in one day.”
2 new Chivo Facts:
1. People are inserting way more USD (to buy #BTC) than what they are withdrawing from the Chivo ATMs (any media outlet can independently confirm this by visiting the ATMs).
2. Today, we received 24,076 remittances, adding up to $3,069,761.05 (in one day).— Nayib Bukele 🇸🇻 (@nayibbukele) October 16, 2021
The increase in USD to Bitcoin conversions within the jurisdiction reflects a change in investor sentiment, which initially faced resistance during adoption from the general public. Moreover, the Salvadorean government offers various subsidies for using Bitcoin such as fuel subsidies and tax exemptions.
El Salvador has installed over 200 ATMs after adopting Bitcoin as a legal tender, making it the third-largest network of crypto ATMs after the United States and Canada.
A Cointelegraph report shows that El Salvador exceeded United Kingdom’s crypto ATM count after deploying 205 crypto ATMs, mainly to facilitate local Bitcoin transactions and Bitcoin to U.S. dollars conversions.
Recently, the Salvadorean government announced to build a $4 million veterinary hospital using the profits attained during the Bitcoin bull market. According to President Bukele, the veterinary hospital will host four operating rooms, four emergency clinics, 19 offices, and a rehabilitation area: “We decided to invest a part of that money in this: a veterinary hospital for our furry friends.”
Why Bitcoin ETF Is Such A Big Deal and May Push Bitcoin Above $100k?
Amid a global regulatory crackdown on cryptocurrencies, the U.S. SEC’s approval of a Bitcoin (BTC) Exchange-Traded Fund (ETF) has come as a pleasant surprise to the Bitcoin community. The most awaited ProShares Bitcoin Strategy ETF is reportedly launching as early as Monday, October 18. This ETF is going to be traded with a ticker symbol of BITO and will track Bitcoin futures.
Bitcoin rallies towards $100K
Instead of achieving regulatory green light, Bitcoin price crossed $62K this morning with a slight correction, BTC continued to stand strong at $61.5K, at the time of reporting. The market is raging with speculation of Bitcoin crossing $100K with this ETF. The timing could not have been better as the fourth quarter has commenced the holiday season bull run, with trader bonuses flooding in as cryptocurrencies take to an upward graph. Since the beginning of October, when the potential BTC ETF began gaining mass traction, the impact on Bitcoin prices also became evident.
According to a Bloomberg report, this Bitcoin ETF will further the institutional adoption of the decentralized sphere, specifically focused on Bitcoin. “An ETF should provide greater ease-of-use for retail investors looking to ride Bitcoin’s often hair-raising ups and downs. Like securities tracking oil and gold, it will change hands on relatively familiar U.S. stock-market venues, rather than in cryptocurrency or futures exchanges whose workings are imposing to some users.”
Regulatory approval can make or break a token
The frequently validated fact that regulatory approval radically helps the growth of cryptocurrencies, despite it being a decentralized and unregulated market, continues to gain credibility. XRP is one of the most prominent examples of how drowning in a regulatory puddle may keep certain tokens into a bear rut, while the rest of the industry leaps into the bullish phase. Due to the ongoing XRP lawsuit against Ripple, the XRP community continues to suffer as the fourth quarter has not helped XRP so far. The community blames the SEC for stretching the lawsuit intentionally so that XRP skips this bull run.