Bitcoin Bulls Go On The Rampage, Conquer $36,000 Level – Cryptovibes.com – Daily Cryptocurrency and FX News

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Since surging above $20,000 on December 16, the bitcoin bulls have not turned back. The flagship crypto has been growing leap and bounds and proving its critics wrong. Many thought that a massive correction awaited BTC once it hit $30,000. But, that never happened.

Although it is not a smooth ride upwards, the bulls appear to be in control of the market currently. Analysts and experts agree that retail and institutional investors have joined hands to push the crypto higher.

After correcting toward the $27.7K a few days ago, BTC price has rebounded and it seems to be heading for the moon. On January 6, 2021, late into the American session, the markets had an answer to the gains that were recorded during the Asian session. The cryptocurrency exploded above $36,000 for the first time and it is currently hovering around $36,500.

Market analysis indicates that there is more room for upside movement given the conditions that currently exist in the market. Statistics released from on-chain analytics resource Glassnode on December 29, 2020, indicate that about 80% of the Bitcoin supply is illiquid.

These changes in the composition of the BTC market have become quite famous as new all-time highs above $36,000 emerge. There is also the narrative that weak hands are selling their holdings to the strong hands and the institutions are replacing whales in the market.

Illiquidity Is Pushing Bitcoin Higher

The reshaping of the BTC investor profile suggests that more long-term holding and less speculative activity is arising from the liquidity squeeze. This process seems to have been quantified with Glassnode estimates coming stating that of the current 18.6 million bitcoins in supply, 78% of them are unavailable. Rafael Schultze-Kraft, the firm’s chief technology officer, concluded:

“Only 4.2 million BTC (22%) are currently in constant circulation and available for buying and selling. It’s worth looking at how this trend has evolved in the past. Looking at the change of supply in each category from the beginning of the year, we can see a clear upwards trend of Bitcoin illiquidity. This indicates that the present bull market is driven by the staggering amount of illiquidity.”

Other commentators have also said that a BTC arms race is offering the excessive fuel to reach an all-time high after another every day. One of these voices is statistician Willy Woo, who commented:

“Latest buying has been driven by participants who are long term holders. This is bullish, this rally is far from done. This is the change in #Bitcoin’s supply moving between participants. When more coins move from liquid (active traders) to the illiquid (HODLers), it’s bullish.”

Interestingly, the economics of Bitcoin’s fixed supply and decreasing emission is covered in one popular book by Saifedean Ammous, The Bitcoin Standard. As the miners get less and less ‘new’ bitcoin per block after every halving event, bitcoin’s inflation rate plunges. It is currently at 1.8%.

How high will bitcoin go?

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Lending / Zinsen erhalten: Celsius NetworkCoinlend (Bot)

Cloud Mining: HashflareGenesis MiningIQ Mining

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