Bitcoin reaches 42,000 dollars and holders are waiting for more appreciation!
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Answer Bitcoin reaches 42,000 dollars and holders are waiting for more appreciation!
Bitcoin price reached a new all-time high of $41,950 on Binance.
Despite the record achieved by Bitcoin, which no one expected, not in terms of value, but in terms of speed, as it took Bitcoin only 25 days, to rise from the level of 20 thousand dollars to 42 thousand dollars.
Bitcoin price is governed by supply and demand:
It is known that the supply of Bitcoin is limited, and it is getting scarcer with time due to the splitting of the Bitcoin mining rewards that occur once every four years, in addition to the incidents of loss, loss and death of Bitcoin holders, which means that it is shrinking more with greater demand, especially for institutional investors.
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According For the data provided From Glassnode, 78% of the bitcoin supply in circulation is illiquid.
Glassnode analysts say this means investors are holding their bitcoin tightly, and low liquidity could create a supply crunch.
On the other hand, stated Philip Gradwell, chief economist at Chainalysis, said that Bitcoin is above $41,000 because new investors keep buying but now have to buy from long-term investors, who are demanding high and high prices to sell.
Gradwell adds that the Bitcoin supply curve is now very deflationary.
Old wallets move:
According to a metric called CDD, which measures Bitcoin’s movement based on the last time it was moved from the address and wallet.
Total (CDD) rises as old hands move bitcoins on the network, according to Glassnode, the weekly average of (CDD) for bitcoin has been on the rise since last October.
Since mid-November, legacy investors have sold $1 million worth of bitcoin to new investors, according to Gradwell.
The volume of coins transferred via the Bitcoin blockchain has increased significantly, indicating the presence of strong liquidity in the market.
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Looking at the dormant portfolios, we find that the sellers have not yet reached the 2017 selling levels.
According to the same data quoted from Glassnode between Q4 2020 and today, Bitcoin has seen less inflow from offshore wallets to cryptocurrency exchanges.
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