When Bitcoin plunged to less than $5000 in March 2020, a lot of individuals were afraid to trade cryptocurrencies. There were so many crypto traders, including prominent professional traders, who expected that cryptocurrency would become a myth.
However, according to data obtained from the crypto analytics firm, the number of Bitcoin addresses having at least 0.1 BTC has risen by 14% over the past one year and by over two hundred thousand addresses since the start of 2020.
Crypto news aggregator, Unfolded, recently pointed out a chart pattern as shown below, saying that the net position count of accounts on the Chicago Mercantile Exchange (a global derivatives marketplace) considered “retail” has hit an all-time high of over 2,300 contracts:
“CME Bitcoin Commitment of Traders Report… Retail net positions hit an all-time high,” Unfolded wrote in reference to the below chart.-
12 – May CME $BTC Commitments of Traders Report (COT)
Open Interest: 9,939 (up 27.6%)
Retail net positions hits all-time-high pic.twitter.com/yglKIE9gBo
— Unfolded (@cryptounfolded) May 18, 2020
In addition, these gained traction by the entrance of Paul Tudor Jones, a hedge fund billionaire into the Bitcoin space this month. Jones wrote in a report:
“At the end of the day, the best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin. So, we need to adapt our investment strategy. We have updated the Tudor BVI offering memoranda to show that we may trade Bitcoin futures for Tudor BVI.”
The spontaneous surge in retail and institutional demand bodes well for the world’s most popular and valuable cryptocurrency.
Bitcoin’s price, like almost any other market, is determined on supply and demand principle: the strong demand for Bitcoin in recent days coupled with a cut in supply because of the halving has boosted the price of bitcoin presently trading at about $9,750 5 30 am local time.