Bitcoin has experienced a quick recovery in recent weeks that has almost taken it to $30,000. The leading cryptocurrency is now trading at $29,900, well from where it was just weeks ago.
Analysts assume that the major period of the Bitcoin bull is here. This is amid some fears shared months earlier that the cryptocurrency industry was due to over-consolidation as a result of the pandemic and its impact on financial markets.
Bitcoin is up 2.5 percent in the last 24 hours and 20 percent in the last week.
BTC Is In Its Main Bull Phase
According to crypto analyst Willy Woo, Bitcoin is now in its main bull phase:
“If you’re looking for an entry to HODL Bitcoin long term, don’t nickel and dime an entry. You’re not going to sweat a few thousand dollars of non-perfect entry when it’s $100k,$200k,$300k in a year… The main bull phase is here. Capital inflows has gone nuts.”
The explanation he believes so is because of the large amount of capital inflows in Bitcoin space.
Technology analyst Kevin Rooke found in December that the Grayscale Investments BTC Trust (GBTC) had consumed almost 13,000 BTCs in a single week. He wrote about the matter:
“Bad news for BTC bears. Grayscale’s Bitcoin Trust just added 12,319 BTC to $GBTC in a single day. That’s more than the 11,512 BTC they added during all of last week, when BTC broke its ATH.”
Strong Retail Demand for Bitcoin
To corroborate the feeling that bitcoin is in the bull market, evidence suggests that there is a clear institutional interest in the leading cryptocurrency.
If you’re looking for an entry to HODL Bitcoin long term, don’t nickel and dime an entry. You’re not going to sweat a few thousand dollars of non-perfect entry when it’s $100k,$200k,$300k in a year.
The main bull phase is here. Capital inflows has gone nuts.
— Willy Woo (@woonomic) January 1, 2021
Pantera Capital, a leading crypto-asset fund, has discovered that there is a large amount of retail appetite for Bitcoin, as shown by PayPal crypto volumes.
On the topic, the firm wrote:
“PayPal’s crypto infrastructure provider is Paxos. Prior to PayPal’s integration of crypto, itBit, the Paxos-run exchange, was doing a fairly constant amount of trading volume — the white line in the chart below. When PayPal went live, volume started exploding. The increase in itBit volume implies that within two months of going live, PayPal is already buying more than 100% of the new supply of bitcoins.”
This strong demand dynamic should drive BTC higher over time as demand outstrips supply.
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