BitMEX recently faced a major US lawsuit, and KuCoin received a major hack within a few days – but why did these events not affect the price of Bitcoin in a more negative way? Alex Svetsky, CEO of the Bitcoin Amber investment app, said that this is due to a number of factors, including the major players buying bitcoin (BTC).
“The price of bitcoin is a function of global demand against a strict, unchanged supply and a shrinking schedule,” he told the Cointelegraph, referring to the asset’s coin supply and mining payments.
“As more people, especially large organizations, seek to acquire them, this not only creates a net price, but continues to increase the price pressure upwards,” he explained, adding, “In the end, all these new players stay on the bitcoin exchange. AV and therefore not marketed. ”
Throughout 2020, a number of major players announced massive Bitcoin purchases, including MicroStrategy, Paul Tudor Jones and Square.
In contrast to the bullish move, the KuCoin cryptocurrency exchange has been hit by over $ 100 million in thefts. A few days later, the US authorities went to court with a lawsuit against the main derivatives of the BitMEX cryptocurrency and arrested one of their leaders.
However, none of these events resulted in Bitcoin falling in a downward trend. Bitcoin has not fallen much in KuCoin news, and it received only a few hundred dollars in BitMEX news – a relatively small reaction to a major news event. On the contrary, after the sideways price movement for several days, the asset started up from the consolidation level. Secular added:
“This is preparation for an extraordinary process, and any breakthrough in the stock market or delays in stimulus or government policy cannot stop it.”