Bitcoin’s Tryst Above $13,000 Reminiscent of 2017 Bull Frenzy; Not a Bubble Anymore

After a long period of stagnancy and sluggish price action, Bitcoin finally climbed up to a price of $13,184 on the 22nd of October. This level was last seen on the 10th of July 2019.

So why the investors abruptly saw fresh reasons for the world’s largest cryptocurrency’s price movement? It was the announcement by PayPal of the launch of a new service enabling its customers to buy, hold, and sell Bitcoin, Ethereum, Bitcoin Cash, and Litecoin directly within the PayPal digital wallet.

Apart from the Black Thursday debacle, Bitcoin has remained unfazed by most of the negative news that has emerged in recent times, be it, the Kucoin hack, or the Bitfinex fiasco. It has even managed to recapture the market after a rather short stint of altcoin decoupling.

The latest PayPal development, on the other hand, is the biggest news of the year in the crypto industry. The online payments company’s announcement adding crypto was a huge milestone on the path to the mainstream adoption of cryptocurrencies.

Additionally, according to the crypto-analytic platform, Santiment, Bitcoin’s 15-month price high came immediately after the largest total exchange outflow of Bitcoin occurred on October 18th since April 29th, nearly a 6-month high for a very reliable bullish indicator, the tweet read.

The massive outflow of demonstrated a strong bullish trend among the investors in the coin market. Its clear that the bullish momentum has been picking up as capital from large corporations flowed into the market. Several companies such as Square, MicroStrategy, and Stone Ridge had recently revealed Bitcoin treasury investments, further legitimizing Bitcoin’s appeal as a store-of-value asset.

Taking a closer look at the derivatives sector as well, calls, or bullish bets, appeared to be extracting higher values than puts, which are bearish bets. This was a potential sign of market participants positioning for a price rally. This also coincided with yet another development. According to the latest charts, the one-month skew declined significantly on the same day to levels not seen since the first week of August, thus projecting a major bullish mood after more than two months.

Reena Shaw: Reena Shaw is a TWJ full-time writer on crypto-currency. A Journalism graduate, her research focuses on legislation and policy-making in the cryptocurrency market.