According to data from Coinbase and Trading View, the price of Bitcoin (BTC) officially reached a new all-time high on December 1, after a three-year high of $ 19,892.
Despite the Thanksgiving crash last week, BTC’s prices have bounced back over the weekend. BTC then easily crossed the all-19,000 mark on Monday, reaching its highest level, albeit on some exchanges.
There are three key trends that increased BTC’s sub-from 3, 3,600 in March to, 19,892. These include increased institutional demand, lower sales pressures and the resilience of BTC during 2020.
The data suggest that institutional demand is driving the rally forward
Most on-chain data points show that the demand for bitcoin from institutions is growing rapidly.
In November, Grayscale reported an all-time high net net inflow, and its open interest in the CME Bitcoin futures market reached close to 1 billion.
Grayscale, in particular, said more 2020 cryptocurrencies were invested in the third quarter of 2020 than ever before.
The statistics that Grayscale sees are important to consider in the institutional interest in Bitcoin as Grayscale Bitcoin Trust is usually the first point of entry for most organizations to contact BTC.
In the United States, there are no exchange-traded funds (ETFs) for Bitcoin and other major cryptocurrencies. Therefore, the Grayscale Bitcoin Trust is a U.S. ETFs are the closest investment vehicle in the market. Read the Grayscale Report:
“More organizations have invested in 3Q20 than ever before, and their average allocation in 3Q19 has increased from Q2.2 million to 2. 2.9 million in 3Q20,” he said. Comfort bodies from multiple products to grayscale products, the average of single-product investors ’commitment during 3Q20 is higher than average. “
Microstrategy bought 50,450 million BTC, accepting Bitcoin as its primary treasury asset, as Syntelgraph reported in Oin Gust. This was probably the spark that triggered the current wave of institutional demand for value digital stores.
Throughout this summer, the selection of Square, Paul Tudor Jones, and later Stanley Druckenmiller, led to a high-profile allotment to Bitcoin, which only fueled positive market sentiment.
I call this chart “The Traditional Onslaught Gut”.
We’ve been talking about “The Heard” for 3+ years. Herd needs a career risk cover. This is it.
They are not early adopters by definition, but their pockets are deep and their capital is sticky. # Bitcoin Getting started right now. pic.twitter.com/jC7uVBXxxW
– Travis Kling (@travis_kling) November 30, 2020
In November, Druckenmiller explained that Bitcoin is likely to stay here because it has outperformed gold in 2020, saying:
“It’s been around for almost 13 years and with each passing day it has increased its more consistency as a brand.”
Low whale inflow
Half a month later, November also saw less selling pressure on whales, according to on-chain data. In other words, the amount of bitcoin sent to exchanges from low-net-worth investors has been steadily declining throughout the month.
CryptoQuant CEO Ki Young Ju appointed the exchange whale ratio as an indicator for long-term bullish market sentiment. He Said:
“Dear $ BTC shorts, you can call me Moon Boy, but unfortunately, there will not be mass-dumping like March this year. The exchange whale ratio (90-day MA) is still very low. Long-term boom is inevitable. ”
Low selling pressure on BTC helped sustain its rally throughout the month, eventually allowing the dominant cryptocurrency to reach record highs.
The resilience of Bitcoin has been a major factor
On June 13, JPMorgan said in a note that the recovery of Bitcoin from the March crash showed that it has enduring power. Recognition of the resilience of Bitcoin by the largest investment bank in the U.S. is likely to boost confidence for institutional investors.
Finally, the impressive performance over the past decade and the strong momentum of Bitcoin since it fell below 6,600 on major exchanges in March showed the long-term potential of BTC as a digital store of resilience and value.
