A flagship cryptocurrency, Bitcoin has now recovered its status as a trillion dollar asset that it lost after the May 2021 crash, caused by China’s ban on cryptocurrencies and mining activities. cryptocurrency.
Today, the price of Bitcoin traded as high as $ 55,172, breaking the critical resistance zone at $ 52,000, signaling a bullish rally for the asset class.
Bitcoin’s renewed bull run appears to be the result of significant demand for the asset class by whales, a term used to describe big investors in the cryptocurrency space.
The bullish momentum in the price of Bitcoin comes from a lot of on-chain analysis data that indicates a net accumulation of Bitcoin by the whales. William Clemente, an expert on chain analysts, explains that whales have been buying Bitcoin since late July.
It uses a metric called the flow and state entity, “Compare the behavior of different market players separated into cohorts according to the size of their holdings. The whales have been buying since the end of July. Shrimp, crabs, fish and octopus are piling up more than ever. The only cohort that has experienced a decline is the 100-1K cohort, which has just started to build up its holdings as well. “
Apart from that, the latest report from on-chain analytics provider Glassnode reveals that the price of Bitcoin has recovered sharply outside of an area of high accumulation, with around $ 1.75 billion in entries of. capital per day.
The report explains, “When prices consolidate in a range for an extended period of time and a large volume of coins is chained, this can be seen as an area of accumulation. As such, we can take this as an established cost base for many buyers. “
What else is going on
Aside from Bitcoin, we are seeing a big rally in Ether, the second largest cryptocurrency. The token traded up to $ 3,622 today and many analysts are calling for all-time highs in the coming weeks.
We are seeing a resurgence of momentum from other altcoins like XRP, BNB, ADA and SOL which are all showing double digit gains in the past 7 days.
We are also seeing great interest from traditional financial institutions to offer cryptocurrency related services. An example will be US Bank, the fifth largest retail bank in the United States, partnering with New York Digital Investment Group (NYDIG) to provide custody services for Bitcoin (BTC), Bitcoin Cash (BCH) and Litecoin ( LTC).
This trend in institutional demand for the asset class and the supply of crypto-related services is expected to continue, especially now that Fed Chairman Jerome Powell and SEC Chairman Gary Gensler have both claimed they had no plans to ban cryptocurrencies in the United States, leading the way. for more institutional adoption of cryptocurrency assets in the future.
At the end of the line
Bitcoin is now trading at $ 54,950, with a market cap of around $ 1.04 trillion at the time of writing. The coin is now worth more than traditional companies like Facebook, Tesla and Berkshire Hathaway. The token is now the 6th most valuable asset in the world according to Asset Dash.