Why China is worried about G7 Summit 2021 and will this effect China great One Belt One Road(OBOR) Project?
After exceeding the $40,000 level at the beginning of January, Bitcoin was unable to go any further and quickly fell back below $30,000. Today, Bitcoin prices are trading above $33,400 and many investors are wondering whether the cryptocurrency will continue its decline, or whether it will truly rebound over-time to go beyond the previous ATH.
Opinions are somewhat mixed among institutional and retail investors. However, it is possible that the digital currency will continue to rise over time, especially thanks to institutional investors who seem to be increasingly interested in crypto currency. As Bloomberg recently noted “wall street investors are getting into BTC”, which shows how institutional investors are changing their mind about a cryptocurrency they previously didn’t want to invest in.
That’s why Grayscale, the largest fund manager in the cryptocurrency market, . Grayscale has thus taken advantage of the recent drop in BTC prices to buy more BTC tokens. A week ago, the company bought many Bitcoins, worth more than $600 million.
Another positive point that shouldn’t be overlooked is the progress that will be made in regulating the cryptocurrency market, as this should help Bitcoin’s price increase. It could indeed make the market more secure and lead to an influx of funds into Bitcoin, according to MicroStrategy CEO Michael Saylors. After all, in order to benefit from Bitcoin, it is not enough to know how to trade Bitcoin, it must be done in a secure and regulated manner to be better protected.
“To the extent that we have regulated entities that are dealing in Bitcoin, I think it’s just going to accelerate the stampede of institutional money into Bitcoin” Saylors explained. “I don’t think it’s earth-shattering. I don’t think it’s going to be negative for the industry. In fact, I think it’s the opposite […] I don’t think Bitcoin needs to be unregulated to be successful. I think Bitcoin just needs to be better than gold to be successful” he added.
From a technical point of view, the Stock-to-Flow model (S2F) published last week by Anthony Pompliano on Twitter shows that the Bitcoin still has room to continue rising. According to the co-founder of Morgan Creek Digital Assets, this model is accurate and shows that Bitcoin is still on track to reach $100,000 by the end of 2021. To reach that level, Bitcoin’s price needs to increase about 200 % from today’s price at $33,400.
Bitcoin whales are also showing that rising prices might be coming. When retail investors got rid of their Bitcoin positions during the recent fall, whales took advantage of the situation by buying the dip. According to Glass nodes on-chain data, the number of addresses holding more than 1,000 BTC spiked when prices bottomed below $30,000, which means that Bitcoin coins are being bought up by major players that will not sell their tokens - which is positive for the Bitcoin network.
“Coins are moving off the market to very strong holders, the ones that keep accumulating without selling” declared the popular on-chain analyst Willy Woo.