The price of the world’s most popular cryptocurrency recently surpassed $34,000, reaching a new milestone seen on a leading crypto exchange, Bitstamp, and surpassing the market value of any bank on earth.
What this means: The world’s most valuable bank, America’s JP Morgan chase presently has a market capitalization, valued at $387.3 billion. At the time of writing this report, Bitcoin comfortably outmatched JP Morgan Chase with a market value of $630 billion.
That said, all the other leading global banks in terms of their market value, fall behind Bitcoin’s market capitalization. They include Industrial and Commercial Bank of China, United States Bank of America, Wells Fargo, China Construction Bank, HSBC Holdings Plc., Agricultural Bank of China, Citigroup, Bank of China.
The flagship crypto is on its record high amid strong purchases seen in institutional and accredited investors gaining more exposure to Bitcoin through the world’s biggest crypto hedge fund, Grayscale, and the CME Bitcoin futures market.
- At the time of writing this report, Bitcoin traded at $33,895.10 with a daily trading volume of $75,236,562,536. Bitcoin is up 15.54% in the last 24 hours. . The current market value stands at $630 billion.
- However, while a price correction of the flagship crypto is inevitable, it may not be that deep, on the bias that no one can predict the future, but Bitcoin could easily break over $50,000 or drop below $20,000 momentarily.
READ: Bitcoin thieves move 3,897 BTC worth $42 million in 1 hour
Why Bitcoin could triple in value annually
Michael Saylor recently disclosed why he believes the flagship crypto-asset could triple in value
The leader of the biggest traded business intelligence firm, Michael Saylor recently disclosed why he believes the flagship crypto-asset, Bitcoin, could triple in value yearly.
In a Stansberry Research interview, Saylor explained Bitcoin is monetary energy that will attract lots of money;
“In a monetary expansion environment where I crank the monetary inflation rate up by 15%, that $300 trillion has got to find a store of value that’s not a fiat derivative.
“That means that Bitcoin is going to keep growing and its monetary force is going to keep growing and it’s probably going to grow 200% a year until it has demonetized gold, silver, sovereign debt, bond indexes, stock indexes, every source of monetary energy which is just a store of value for someone that doesn’t want to lose their purchasing power and needs a scarce asset, ” Saylor said.
Another key macro supporting the bullish bias of Micheal Saylor is data showing the number of addresses holding 1,000 BTC just reached a new all-time high of 2,446.
Over the last 21 days, 141 new whale addresses with over 1k BTC were created, suggesting large entities are expecting a significant price rise for Bitcoin in the near future.
The number of addresses holding 1,000 BTC just reached a new all time high of 2,446.
Over the last 21 days, 141 new whale address with over 1k BTC were created, suggesting large entities are expecting a significant price rise for #Bitcoin in the near future.
— Bloqport (@Bloqport) January 21, 2021
Some days ago, MicroStrategy purchased approximately 314 bitcoins for $10.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $31,808 per bitcoin, showing they hold approximately 70,784 Bitcoin, and thereby making the flagship crypto-asset scarce.
MicroStrategy has purchased approximately 314 bitcoins for $10.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $31,808 per bitcoin. We now hold approximately 70,784 bitcoins.https://t.co/zMJSH29bmC
— Michael Saylor (@michael_saylor) January 22, 2021
Crypto entity moves $227 million worth of Bitcoin
a large entity transferred 6,925 BTC worth $226,609,828, from Unknown wallet to Unknown wallet.
Large entities in the Bitcoin market are transferring a significant amount of Bitcoin amid the prevailing market volatility in play.
Data retrieved from Whale Alert, an advanced crypto tracker, revealed a large entity transferred 6,925 BTC worth $226,609,828, from an unknown wallet to another unknown wallet.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 6,925 #BTC (226,609,828 USD) transferred from unknown wallet to unknown wallet
— Whale Alert (@whale_alert) January 23, 2021
- At the Bitcoin market, investors or traders who own large amounts of bitcoins are typically known as Bitcoin whale.
- This means that a BTC whale would be an individual or business entity (with a single Bitcoin address), that owns around 1000 coins or more.
- As BTC whales accumulate BTCs, Bitcoin’s circulating supply reduces, and this can weaken any bearish trend bitcoin finds itself in.
Meaning that over time, it’s possible that as BTC approaches its fixed supply of 21 million – the price of BTC will go up, with BTC’s present demand factored in.
- leading household names in finance that include Paul Tudor Jones and Stanley Druckenmiller endorsed it as an alternative asset, adding to the rally.
- Not forgetting listed U.S brands like MicroStrategy Inc. and Square Inc. that moved their cash reserves into crypto in search of better returns than what near-zero interest rates deliver.
Also, a leading crypto expert, Willy Woo, via his Twitter handle, hinted that Bitcoin’s price could still rally higher on the bias that the “Inventory depletion on spot crypto exchanges has stopped, signifying the re-accumulation phase of this macrocycle is likely to complete. If this cycle mimics the last, inventory on exchanges will increase, as retail starts entering in large numbers, attracted by the price rises.”
94% of Bitcoin investors are making money
Microstrategy bought 314 more Bitcoin valued at $10 million, momentarily pushing prices above $32,000.
Bitcoin investors have reasons to be excited amid a significant amount of volatility prevailing at the flagship crypto market.
The number of Bitcoin holders in profit is about 94% as data retrieved from Glassnode, a crypto analytic firm, showed.
Bitcoin Percent Addresses in Profit (1w MA) just reached a 1-month low of 93.851%.
— glassnode alerts (@glassnodealerts) January 22, 2021
Metric description; The percentage of unique addresses whose funds have an average buy price that is lower than the current price. “Buy price” is here defined as the price at the time coins were transferred into an address.
At the time of drafting this report, Bitcoin traded at$32,640.90 with a daily trading volume of $63.8 billion. Bitcoin is up 5.03% for the day.
What this means: Sequel to such metric stated above, the turnaround for investors in profit occurred some hours ago when Bitcoin dropped to $28,950 — a key level when it comes to support from large pocket investors and only its second dip below $30,000 in 2021, as a leading bitcoin investor, Microstrategy bought 314 more Bitcoin valued at $10 million, momentarily pushing prices above $32,000.
— Documenting Bitcoin 📄 (@DocumentBitcoin) January 22, 2021
Chainalysis researchers explained in detail that as the rush for BTCs keeps increasing, the price will most definitely be affected. The report said:
“With more people looking to trade BTCs, which is only becoming scarcer following the recent halving, bitcoin moving from the investment bucket into the trading bucket could become a crucial source of liquidity.”
Consequently, amid the impressive metric showing a lot of Bitcoin wallets in profits, Jesse Cohen, a senior crypto analyst, in a note to Nairametrics, spoke on the outlook for Bitcoin in 2021.
“I expect Bitcoin to remain highly volatile to the downside in the new year, given the potential for more scrutiny and tighter regulation. That should see prices fall back from their record highs, with the prospect of increased regulation being the most important factor affecting Bitcoin in 2021.”