Now it's supposed to Bitcoin is being closely monitored by a growing number of institutional investors.
That's what the Bitfinex CTO claims Paolo Ardoino, according to which there are still many institutional investors who have not yet entered this market, and who are looking at it precisely to decide how to move.
“The turbulent crypto markets have left traders guessing what the next price move will be. Every Bitcoin move is now being watched carefully by a growing audience of institutional investors still trying to grapple with the possibilities of an asset that just a decade earlier was the exclusive domain of a small group of technologists. As bitcoin captivates, the future becomes even brighter for all those who own the new digital gold. "
This scenario poses a growing market demand for BTC, while another indicates a contracting offer.
80% of Bitcoin out of the market
Melis reveals in Twitter that almost the 80% of all existing BTC would be out of the market at this time.
The graph comparing the volumes of liquid BTC with illiquid BTC, that is, those that are kept in the wallet without being used, reveals that only about 3 million BTC out of the 18.5 million are highly liquid, that is, they are traded regularly in exchanges, with approximately 1 million liquids. BTC, and the remaining 14.5 million illiquid.
Also, until early 2020, the volume of liquid BTC was increasing, but over the past year the trend has reversed and is now decreasing.
Just think that a year ago there were around 3.5 million highly liquid bitcoins, with almost 1.5 million liquid BTC, and only slightly more than 13 million illiquid BTC. In other words, illiquid bitcoins have increased by more than 10% in the last twelve months.
If this trend continues, a new price increase is expected.
For example, according to Pantera Capital, the price of bitcoin could increase by more than 200% during the next eight months and reach the $ 115,000 in August 2021. However, he also argues that the 2021 rally could be different from the 2017 rally.
The founder and CEO of Pantera, Dan Morehead, said:
“The crypto landscape is so solid right now. About six months ago, the market capitalization of Bitcoin was the same as that of L'Oreal Cosmetics, now it has surpassed Facebook, and that is a big difference in the way the market perceives Bitcoin.
Pantera's co-CIO added, Joey krug.
“It's quite different from 2017. The high-level fundamentals for 2017 were that there really wasn't a lot of fundamentals, most of the projects were just an idea on paper, most of the things hadn't been launched, most of the things not having live products ”.
Therefore, the scenario has changed a lot compared to four years ago, both within the cryptocurrency sector and in the global financial landscape in general. However, the underlying dynamics that drive the price of bitcoin higher, as demand increases and its supply is inelastic to the market, remains and will remain forever.