Bitcoin (BTC) has risen steadily in the crypto market since the start of the year. As more private investors buy in, the world’s largest digital currency is trading at $21,077.33, up 1.36% in 24 hours.
Despite occasional setbacks, Bitcoin bulls have persisted, breaking past major resistance levels to hit fresh all-time highs in recent weeks.
Institutional investor demand for Bitcoin and public interest in crypto investment drove this rise. This year’s optimistic trend is also supported by blockchain technology’s mainstream acceptance and use cases.
The world’s premier cryptocurrency has seen tremendous growth in recent months. Price movements have been driven by various factors, both fundamental and on-chain.
Traditional variables like economic conditions and institutional engagement can affect Bitcoin’s price over time.
On the other hand, on-chain indicators offer insight into the health of networks related to Bitcoin transactions.
These indications can assist in predicting how more funding from retail and business buyers would affect the cryptocurrency’s price.
Demand for Digital Assets Is Raising Bitcoin Prices
Bitcoin prices are rising due to factors including demand for digital assets as a hedge against quantitative easing.
Glassnode’s statistics show that Bitcoin’s seven-day Moving Average (MA) has dropped to 14,515,726.077, an eight-month low. While the number of addresses in loss has dropped to its lowest point since August 2018.
This may indicate that Bitcoin holders are hoarding their currencies, according to Glassnode researchers. The site estimates 25% to 35% of Bitcoin’s circulating supply has changed in 30 days, compared to 20%.
This shows substantial HODLer activity in the network, as investors keep their stocks for medium or long-term gains.
Since Bitcoin is above its average entry price for the month, more investors are benefiting as it nears historic highs.
This presents an opportunity for those looking to enter the market should BTC experience a mild correction.
This suggests that these investors arrived at a favorable time, offering them the possibility of consistent returns.
Chainalysis and Glassnode indicate several “whales” with $1 million or fewer BTC holdings have increased activity due to this profitability.
These whales are believed to be responsible for driving up prices significantly on several occasions throughout 2021.
In 2020, the price of Bitcoin surged significantly, reaching a peak value of more than $20,000 in December. Since then, there has been a flurry of predictions from crypto analysts about what the future holds for Bitcoin’s price.
Ben Armstrong predicts a range from $25,000 to $30,000 by 2021, although other analysts are more optimistic.
For example, entrepreneur Tim Draper has predicted that the price could reach as high as $250,000 by 2025. Similarly, S2F creator PlanB expects prices up to $288k this year.
Bitcoin hit its all-time high (ATH) in November 2021, and at present, it is down by a massive 69.36%. This massive drop has been caused by the current headwinds facing the world’s leading digital currency.
These headwinds include the crisis rocking the Digital Currency Group, whose subsidiary Genesis Global just filed for bankruptcy. Despite this price drop, Bitcoin still has a lot of growth potential investors will want to ride.
This includes the recent inflow of institutional investors buying Bitcoin as an alternative asset class to diversify their portfolios.
Positive legislative developments from governments throughout the world could boost adoption rates and Bitcoin prices.
Finally, major companies such as Tesla and PayPal have given credibility to cryptocurrencies and increased public awareness.
A positive outlook for Bitcoin
The future of Bitcoin is looking brighter than ever. As the currency rises in value, more people are investing in Bitcoin. Since its 2009 launch, the cryptocurrency has continuously increased in value.
Many experts expect a cryptocurrency to reach new heights in the coming future.
Increased institutional usage and an increasing number of shops accepting Bitcoin payments support this optimism.
Bitcoin is also more appealing to investors since technological developments have made transactions faster and easier.
These factors drive demand for Bitcoin and create an environment where its potential can be realized.
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