According to a report by the Coinpage, the transfers of a large volume of Bitcoin to wallets are continuing. The price of Bitcoin has repeatedly broken its peak in recent weeks. But recently, Bitcoin is fluctuating in the $ 30,000 range, and some are expecting a correction from that level. The data show that people are still buying heavy figures in this price range.
These amounts are transferred to wallets. But on the other hand, in every price drop, we see a large volume of purchases. It remains to be seen whether the price will fall in the first bitcoin to reach the $ 30,000 mark.
What has been the new Bitcoin record against gold?
Two weeks ago, the price of Bitcoin crossed $ 20,000 after three years, and since then, the world’s largest digital currency has broken its record several times. According to CoinInsider, the new bitcoin record surpassed the price of gold.
The new historical price of Bitcoin after crossing the $ 30,000 mark, is equivalent to 15.4 ounces of gold. It means the defeat of gold against bitcoin. From January 2020 to December 2020, Bitcoin grew by more than 300%. While gold has grown by only 25% during this period. This means that the demand for bitcoin has far exceeded the demand for gold.
What has been the role of big investors in raising the price of bitcoin?
According to the Cointelegraph, the giant cryptocurrency investment GaryScale has increased its assets to under $ 20 billion and bought 3 times the amount of bitcoins mined in December. With $ 17.475 billion in assets, GaryScale is currently the largest corporate player in Bitcoin, surpassing other market investors.
The NewsBitcoin reported that US Company GreenPro plans to invest $ 100 million in bitcoin. The company announced that in early 2021 it will invest the target amount in Bitcoin. GreenPro also acknowledged that other reputable altcoins, have a high potential for return on investment and are better maintained than cash. One of the reputable altcoins is Ethereum.
Newcomer MicroStrategy, while not investing financially, currently has 70,470 bitcoins equals $ 2.06 billion.
All the big investors take the existing assets out of circulation and transfer them to cold wallets for long-term storage. These figures indicate an increase in liquidity pressure in the bitcoin market.
Analysts predict that increasing corporate demand for newly extracted bitcoins will help shape the challenge of buying orders and price increases.
Is it possible to increase the price of bitcoin in the future?
We should remember that after halving this year, the number of bitcoins produced per block has also decreased to 6.25 units. According to economic ideology, when we see decreases in the supply of an asset and requests for that asset remain constant, the price of the asset will increase.
According to Cryptopotato, analysts believe that there is a possibility of entering a liquidity and supply crisis, which is causing the price to rise. Recently, there have been many developments in the bitcoin market, such as the influx of institutional investors, the activities of bitcoin hoodlers, stock exchanges, and the supply of miners. Analysts reviewing these developments conclude that the bitcoin situation is “extremely bullish.”
Analysts say large companies have monopolized supply and liquidity in the market. According to them, other companies will soon enter the digital currency market.
The interesting thing is that the amount of bitcoins bought by large companies is more than the number of bitcoins mined in the same period. The CEO of the investment company “Social Capital” believes that the price of bitcoin may reach 150 thousand dollars.