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You are here: Home / News / Bitcoin News / Bitcoin Fails To Rise Above $20k, But There’s Hope
Bitcoin Fails To Rise Above $20k, But There's Hope

Bitcoin Fails To Rise Above $20k, But There’s Hope

December 7, 2020 by Reena Shaw

Market participants have been riding the Bitcoin wave to establish new peaks. At a price of $19,244 and a market cap of $356 billion, it went on to become the seventh-largest currency in the world. However, coins have slowly made a way out of long-term storage.

This was according to the crypto analytic platform Glassnode, which revealed that the number of Bitcoins moved when the crypto crossed the $18,000 level was five times greater than the bulls run three years back. Nearly 10% of its supply was moved at a price higher than $18,000 in contrast with just 2% in 2017 when it reached its all-time high. This essentially meant that many traders valued the cryptocurrency above this level which further indicated “their conviction for further BTC price appreciation.”

Around 10% of the #Bitcoin supply was moved at a price above $18,000.

Many investors are valuing BTC above this level, which may indicate their conviction for further $BTC price appreciation.

In contrast: In 2017 at ATH this number was only 2%.

Chart: https://t.co/jrq9kjut6j pic.twitter.com/IdDizGNtxK

— glassnode (@glassnode) December 6, 2020

UTXO Realized Price Distribution essentially shows the quantity of BTC the was last moved in each price range. This news aligns with the consistent decline in terms of the long-term holder supply in profit of late which evidenced that investors have been cashing out some of their Bitcoins

This was a bearish sign that hinted at a potential downward correction from the current price range. If this indeed materializes, there’s a possibility that Bitcoin could mimic its 2018 bust. Despite its popularity, the naysayers see the cryptocurrency as gambling by retail investors and speculative pros in a controversial industry and have been awaiting a bust like the one after the peak three years ago.

But the current and the past rally are very different. Hence, even as the coin witnessed long-term holders backing out, there is also an influx of capital from industry behemoths and players that have been in the money game for a long time.

Bitcoin’s Retail Vs Institutional FOMO

The latest UTXO realized price distribution [URPD] figure is one of the many differences that were observed between the 2017 and 2020 rally. Three years ago, Bitcoin’s furious rally was mostly led by retail investors as opposed to the institutional players that have been pumping the asset’s price in 2020.

While arguing the major role played by institutional giants, it is important to include asset managers such as Grayscale which has been quite an important platform that has opened a potential window into a wider crypto audience. Not to forget the several family offices that have invested in Bitcoin and other cryptocurrencies such as Yeomans Capital, Austin, Winklevoss Capital, New York, and Galaxy Investment Partners, New York, and are keen on portfolio construction in the wake of Pandemic.

More recently, Microstrategy bought an additional $50 million worth of Bitcoins which brought the business intelligence firm’s treasury holdings to nearly 40,824 Bitcoins in totality.

With the growing size of investment allocations in the world’s largest cryptocurrency, it is safe to say that the optimism is on a rise regarding the asset despite a few players backing out.

Filed Under: Bitcoin News, News Tagged With: Micro-Strategy

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