Thursday, February 25, 2021

‘Sustained institutional buying’ will hold Bitcoin above $50K: CrossTower

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In a report shared with Cointelegraph, institutional crypto buying and selling platform CrossTower asserts that giant buyers won’t let Bitcoin (BTC) fall again under $50,000.

In line with the report, addresses holding over 1,000 BTC rose to document highs in January on the heels of sizable retracements — evidencing sturdy dip-buying from whales regardless of the comparatively excessive worth of Bitcoin.

Mixed with constructive enterprise developments within the trade, comparable to Mastercard’s decision to integrate certain cryptocurrencies and BNY Mellon’s newly launched custody services, CrossTower believes the outlook stays bullish for the digital asset markets. The agency additionally described the expansion of company Bitcoin treasuries, comparable to Tesla’s $1.5 billion BTC acquisition, as strengthening the bullish case.

“We imagine the document quantities of addresses holding 1,000+ BTC in latest weeks is proof of rising institutional curiosity and sure displays the numerous headlines in January and February of institutional buyers turning into lively in Bitcoin,” Martin Gaspar, analysis analyst at CrossTower, advised Cointelegraph.

He continued:

“In our view, many institutional buyers are coming into with a buy-and-hold mentality given their understanding of Bitcoin as digital gold. The on-chain information means that these buyers, historically seen as good cash, noticed the January worth weak point as a possibility to amass BTC or enter the house, which helps our bullish view of BTC.”

CrossTower additionally famous a pointy decline within the sum of Bitcoin held on centralized exchanges amid document stablecoin holdings and quantity, describing the pattern as offering additional bullish momentum to the markets. Analyzing information from CryptoQuant, CrossTower discovered stablecoin volumes on crypto exchanges totaled $7.4 billion as of February — up almost 159% from December 2020.

BTC price briefly fell below $50,000 on Monday however has since regained its footing above $53,000. Regardless of the sudden correction, Bitcoin has appreciated by greater than 12% over the previous week. 12 months-to-date, the BTC worth is up virtually 85%, in accordance with CoinMarketCap information.