In a report sent to Cointelegraph, institutional cryptocurrency trading platform CrossTower claims that large investors will not allow Bitcoin (BTC) to fall below $ 50,000.
According to the report, headlines containing more than 1,000 BTC rose to a record high in January after the large withdrawals, indicating significant whale purchases despite the relatively high price of Bitcoin.
Combined with positive business developments in the industry, such as MasterCard’s decision to incorporate some cryptocurrencies and custody services recently launched by BNY Mellon, CrossTower believes the outlook for digital asset markets remains positive. The company also cited a rally in Bitcoin bonds, such as Tesla’s $ 1.5 billion acquisition of BTC, to bolster its optimistic position.
“We believe the record number of 1000+ BTC titles in recent weeks is indicative of increased institutional interest and is likely to reflect several headlines in January and February as institutional investors become active in Bitcoin,” Martin Gaspard, analyst at CrossTower, told Cointelegraph. …
“From our point of view, many institutional investors have a buy-and-hold mindset given their understanding of Bitcoin as digital gold. Data on the web shows that these investors, traditionally seen as smart money, saw price drops in January as an opportunity to buy BTC or Room entry, which supports our bullish view on BTC. ”
CrossTower also noted a sharp decline in the number of bitcoins held in central exchanges amid record firmness in stocks and volumes, and described this trend as giving the markets more upside momentum. By analyzing CryptoQuant data, CrossTower found that stablecoin volumes on cryptocurrency exchanges totaled $ 7.4 billion in February, an increase of roughly 159% from December 2020.
BTC briefly dropped below $ 50,000 on Monday, but has since risen to over $ 53,000. Despite the surprising correction, Bitcoin has gained more than 12% over the past week. According to CoinMarketCap, the bitcoin price has increased by nearly 85% so far.