The price of bitcoin (BTC) has officially reached a new all-time high above $ 1, 19,892, almost three years later, according to data from Coinbase and TradingView.
Despite the Thanksgiving accident last week, BTC Price managed to rebound throughout the weekend. BTC then easily crossed the $ 19,000 mark on Monday, reaching one or two exchanges.
BTC’s growth in March increased from $ 3,600 to $ 19,892. These include increased institutional demand, lower selling pressure and flexibility of BTC during 2020.
Data suggests institutional demand triggered rally
Most of the on-chain data points show that the demand for bitcoin from institutions is increasing rapidly.
In November, Grayscale recorded all-time high net inflows, and the CME bitcoin futures market saw its open interest rate close to $ 1 billion.
In particular, Grayscale stated that more institutions than ever before invested in cryptocurrencies during the third quarter of 2020.
Grayscale statistics are important for gauging institutional interest in bitcoin because grayscale bitcoin trust is usually the first point of entry for most institutions to gain benefits for BTC.
In the United States, there are no exchange-traded funds (ETFs) for bitcoin and other major cryptocurrencies. Therefore, the grayscale bitcoin trust is the closest investment vehicle for ETFs in the US market. Read the grayscale report:
“More institutions invested in 3Q20 than before and have increased their average allocation from 3Q19 to $ 2.2 million in 3Q19. Institutions resting with multiple products within the product’s grayscale suite have nearly doubled the commitments of single-product investors during 3Q20. “
As reported by Cointegraph in August, MicroStrate bought BTC for $ 450 million, adopting bitcoin as its primary treasury asset. It was this spark of possibility that triggered the current wave of institutional demand for digital stores of value.
This was accompanied throughout the summer by high-profile allocations for bitcoin by the likes of Squire, Paul Tudor Jones, and later Stanley Druckenmiller, which only led to positive market sentiment.
I call this chart “The Traditional Onslaught”.
We have been talking about “The Herd” for 3+ years. The herd requires career risk cover. This is that
– Travis Kling (@Travis_Kling) 30 November 2020
In November, Druckenmiller explained that bitcoin is likely to remain here, as it is much better than gold in 2020, saying:
“It has been around for 13 years and with each passing day it stabilizes it as a brand.”
Low whale arrivals
Six months after halting, November also saw lower selling pressure from whales, according to on-chain data. In other words, the amount of bitcoins sent from high-denomination investors to the exchanges has been steadily decreasing throughout the month.
Cryptocurrency CEO Ki Young Joo indicated the exchange whale ratio as an indicator for long-term bullish market sentiment. He What was said:
“Dear $ BTC is lacking, you can call me a moon boy, but unfortunately, there won’t be a mass-dumping like March this year. The exchange whale ratio (90-day MA) is still very low. Long-term bullish is inevitable. . “
Lower sales pressure on BTC helped maintain its rally throughout the month, eventually allowing major cryptocurrencies to reach record highs.
Bitcoin’s flexibility has been a big factor
On June 13, JP Morgan said in a note that Bitcoin’s recovery from the March crash showed it had power. The possibility of Bitcoin being recognized by the largest investment bank in the US served as a major confidence boost, especially for institutional investors.
Finally, the impressive performance over the past decade and the strong performance of bitcoin after dropping below $ 3,600 in major exchanges in March demonstrated BTC’s resilience and long-term potential as a digital store of value.