‘Sustainable Institutional Purchase’ will preserve Bitcoin above $ 50,000: CrossTower
In a report shared with Cointelegraph, institutional crypto trading platform CrossTower claims that major investors will not drop Bitcoin (BTC) below $ 50,000.
According to the report, addresses of more than 1,000 BTC soared to record highs in January after seeing significant backtracks. This shows that despite the relatively high Bitcoin price, whales have seen a sharp decline.
Combined with positive business developments in the industry such as Mastercard’s decision to incorporate certain cryptocurrencies and BNY Mellon’s newly launched custody services, CrossTower believes the outlook for the digital asset markets remains optimistic. The company also described the growth of Bitcoin Treasuries like Tesla’s $ 1.5 billion BTC acquisition as reinforcing the uptrend.
“We believe that the record number of addresses with more than 1,000 BTC in the past few weeks is evidence of the rising institutional interest and likely reflects the many headlines in January and February in which institutional investors are active in Bitcoin,” said Martin Gaspar , Research Analyst at CrossTower, told Cointelegraph.
“In our view, a lot of institutional investors are entering with a buy-and-hold mentality as they see Bitcoin as digital gold. The data on the chain suggests that these investors, traditionally viewed as smart money, are at the mercy of price weakness January felt as such. ” Opportunity to purchase BTC or step into the room, which supports our bullish view of BTC. “
CrossTower also saw a sharp drop in the amount of bitcoin held on centralized exchanges due to record holdings and volumes in stable coins, labeling the trend as further positive momentum for the markets. CrossTower analyzed data from CryptoQuant and found that the stable volume of coins on crypto exchanges in February was $ 7.4 billion – an increase of nearly 159% from December 2020.
BTC price briefly fell below $ 50,000 on Monday but has since regained a foothold above $ 53,000. Despite the sudden correction, Bitcoin has gained more than 12% in the past week. According to CoinMarketCap data, BTC price has risen nearly 85% since the start of the year.