Sam Trabucco, a trader at Alameda Research, believes there are four main factors that affect the price of bitcoin (BTC).
Incentives increase the adoption, whales and power of other Bitcoin products, as well as the influence of other markets.
Alameda Research is a large cryptocurrency company that trades various digital currencies and financial derivatives with volumes ranging from $ 600 billion to $ 1.5 billion per day.
General accumulation and dependence increase
Over the past month, Cointelegraph has continued to report on a whale-warming trend.
Whale groups are formed when whales buy bitcoin and do not sell it right away. This usually indicates that the whales bought bitcoins and sent them to their personal wallets, but did not transfer their money.
The accumulation of bitcoin at the expense of whales probably coincided with a decline in profits in the altcoin market. In particular, as the decentralized financial market has shrunk, Bitcoin has experienced tremendous growth all along.
Based on various trends and data points, Trabucco said that the four factors mentioned above probably contributed to Bitcoin’s increase in recent months. He wrote:
So first of all, why “higher”? There has been a lot of talk about this – some of the reasons for the explosive growth of bitcoin that I have seen include the many institutional purchases, broader adoption, whales, the outflow of trendy products to bitcoin and the influence of other markets, etc.
Apart from these factors, the Cointelegraph reported that bitcoin currency reserves are also rapidly shrinking.
Bitcoin foreign exchange reserves are shrinking as investors increasingly withdraw their money from the stock exchanges. Since investors often list cryptocurrencies on stock exchanges to sell them, this trend indicates that there are fewer sellers and fewer BTC supplies in the market.
When positive fundamentals and technical conditions coincide with an overall reduction in sales pressure, they can increase momentum around Bitcoin.
The overall effect may also be in favor of Bitcoin.
Joe Biden’s expected victory and the opportunity to buy Moderna and Pfizer vaccines are positive factors for Bitcoin, Trabucco said.
The trader claims that support for Bitcoin from several technology companies, including PayPal, banks, politicians, high-wealth investors and billionaires, is likely to increase the price of BTC. He wrote:
“My opinion would be: Is, probably a mix. I think Biden’s gains and vaccinations were good, like SPY, which has a short and long-term relationship with BTC in the COVID era, which contributed to this. There are also many traditional companies / organizations – banks, hedge funds, rich spots, opinion leaders, technology companies, senators in Wyoming, etc. – indicating support for BTC, which directly (buys) and indirectly (sentiment) affects price growth. “.
In the short term, the Bitcoin barrier will remain a resistance zone of $ 18,500. On top of that, there will be little resistance until a new full-time high is reached, after which bitcoin enters uncharted waters to find out the prices.
Given that post-halving training continued for 15 months after halving in 2016, it is highly likely that Bitcoin will peak in mid to late 2021, some analysts say.
In that case, Bitcoin’s future prospects remain bright, especially with several macro-technical factors increasing market sentiment.