There is a perfect storm for Bitcoin price that has enabled this extremely strong rally, possibly on the way up to $ 25,000
Bitcoin price has experienced an extremely strong bull run over the past few weeks, and the past few months have taken it from $ 10,000 to $ 24,000. At press time, Bitcoin is trading at around $ 24,922, up more than 5% over the past 24 hours. Most likely Bitcoin is trying to cross the $ 25,000 mark.
BTC/USD 4-hour chart | Source: TradingView
There was a perfect storm of demand for Bitcoin price that triggered this extremely strong rally
Bitcoin is expected to climb even higher over the medium to long term as these demand trends are expected to continue. This is in line with the expectations of many top analysts that Bitcoin will move to six digits in the next two years.
Bitcoin analyst Cole Garner recently shared an extensive thread on Twitter about why he thinks the BTC demand trend is extremely positive.
He stated:
2/ A perfect storm of demand dynamics is driving #Bitcoin price.
I think something shifted in the market — and active investors & traders would do well to adjust their mindset.
— Cole Garner (@ColeGarnerBTC) December 23, 2020
He thinks those institutional players will buy Bitcoin, no matter the price. This will keep price action supported in the long run as these players use aliases to expand the market over time.
Who is buying Bitcoin? Are they not worried about swinging top like 2017? This raises the question of who exactly are the buyers. The short answer, Wall Street. For example, MassMutual, a life insurance provider, bought $ 100 million worth of BTC in the past few weeks. The company says this exposure represents a major part of its foray into the financial sector of the digital economy.
There are also companies like MicroStrategy and Square that buy Bitcoin for their balance sheets. The idea is that since the US Dollar is rapidly devaluing against other currencies and the entire asset, it makes more sense to own BTC or other assets.
You can see the BTC price here.
Read more:
- Bitcoin Price Has Risen Almost 3%, Pushing Capitalization To Reach $ 441 Billion, Regaining Momentum
- Bitcoin Price Hitting $100,000 To $200,000 In The Next 12 Months Is Becoming A Quite Common