Bitcoin is on fire! It was being traded at a staunching $22,755 as it recorded handsome gains of 17.34%. This comes just hours after the world’s premier cryptocurrency hit a milestone after surpassing $21,000 for the first time ever.
Bitcoin has a limited supply which has made it quite attractive as inflation hedges. Thanks to the latest rally, the number of BTC addresses holding at least $1 million saw a massive parabolic rise. This was according to the crypto intelligence platform, Glassnode, which revealed that the trend materialized right after the figure skyrocketed by 150% to a whopping 66540 number of addresses.
This was when BTC crossed $20k which turned all early miner addresses [50 BTC block rewards, unspent or lost] into millionaire addresses.
There’s no doubt Bitcoin is clearly on a tear and the level of optimism around it is exceedingly high since it showed no signs of stopping. It is not just the millennial investors that have been pouring their capital into Bitcoin, institutions too, consider it as a very promising asset. This could potentially attract even more investors looking for yield even as the rally in itself was led by institutional investors.
Bitcoin Bull and prominent Statistician, Willy Woo is of the opinion that Bitcoin has a long way to go and is still far from its all-time high. He had tweeted,
“We are not at the all-time-high juncture where the BTC Top Cap Model starts curving upwards. Let’s see how high she runs in 2021. Congrats Bitcoin!”
Winds Of Change
To the advocates of the crypto-asset, Bitcoin is touted as superior to gold in many ways, be it factor such as returns, portability, or storage, there are good reasons as to why a significant chunk of market participants, who were earlier big Gold bugs, have not turned to BTC as well.
In the last quarter itself, the industry saw a phenomenal wave of institutional investors. Firms like MicroStrategy, are keener on investing in Bitcoin rather than gold. These were mostly driven by fears of the devaluation of fiat currencies due to the excessive money printing activities by the people in power in response to the coronavirus pandemic-triggered economic downturn.
The latest firm to announce its allegiance to the cryptocurrency while reducing its gold exposure was UK-based Ruffer Investment Company Limited.