The price of the Bitcoin went up to $8,800, after breaking past the triangle formation. The price momentum is bullish. The industry is moving forward, and there have been several developments.
Despite the Bullish momentum, Mike Novogratz stated that “BTC might likely consolidate between $7,000 through $10,000.” He further added, “trees don’t grow to the sky.” This, he stated in an attempt to say that the crypto market is overbought. This week is slower than usual.
The whales are currently buying Bitcoin and holding them. Diar recently revealed that the numbers of Bitcoin addresses containing anywhere from 1000 and 10,000 BTC had accumulated 450,000 more in Bitcoin over the past nine months which is the equivalent to $3.92 billion in the current exchange rate.
Diar has noted an increase of 26 percent in the numbers of Bitcoin addresses holding anywhere from 1 to 10,000 Bitcoin. This is particularly after the cryptocurrency established its bottom at $3,200.
Diar has also revealed that the majority of the investors do not seem to trust a third party service. They do not want to believe in an exchange or a custodian firm to serve as an agent to hold the Bitcoin for them. The report further stated:
“Bitcoins held by major addresses – mostly of which are exchanges – have seen an exodus of over 300K Bitcoin since the start of 2018. At peak, these addresses held 750,000 more Bitcoin than they do today, 21% of the total circulating supply versus 16% today.”
In the current scenario, it is seen that there is more power to the bulls. The price of the Bitcoin has increased at a point in time where there is a mixed economic outlook across the globe. There is a high probability of people moving their money out of the traditional markets.
Garrick Hileman, a blockchain research head, recently reported an inverse correlation between the value of RMB and the Bitcoin. This means that the increase in the value of Bitcoin has closely matched up with the recent RMB declines concerning trade tensions.
Several investors have begun to treat Bitcoin as a hedge versus a potential economic crisis. This is one of the reasons why eToro has been recently reporting increased Bitcoin holdings.
Tyrone Ross, Partner at a wealth management firm, stated, “The selling in Bitcoin got exhausted last year, and people started to come back in around $4,000.”
Several analysts and Fintech specialists are citing Bitcoin as a credible asset which can be used to diversify the portfolio.