Why Is The Bitcoin Price Rising?
Sam Trabucco, an investor at Alameda Research, thinks four general factors support the Bitcoin (BTC) price increase.
Four factors driving the Bitcoin price rise include increased prevalence, whales, capital flows from other products to Bitcoin, and the influence of other markets.
Alameda Research, a giant cryptocurrency company that buys and sells various cryptocurrencies and derivatives, has a daily volume of between $ 600 million and $ 1.5 billion.
The general composition and prevalence are increasing
Whales have increased their savings over the past month.
Whale clusters are formed when whales buy Bitcoin and not sell it right away. This means that usually whales buy Bitcoins, transfer them to their personal wallets, and have not moved their savings since then.
The Bitcoin whales' accumulation movement likely coincided with the profit-driven downturn in the altcoin market. For example, when the decentralized financial market retreats, Bitcoin has consistently experienced a significant rally.
Exchanges' Bitcoin reserves drop when investors withdraw their money from the exchanges. This trend shows that there are fewer sellers in the market and fewer available Bitcoin supplies, as investors often invest money in exchanges to sell Bitcoin.
Positive basis and coupled with the general decline in print sales of technical factors, may lead to positive results for Bitcoin.
Macro effects could also support the rise
According to Trabucco, Joe Biden's victory in the presidential race and the positive results of the Moderna and Pfizer coronavirus vaccines may also have contributed to the Bitcoin price increase.
The investor claimed that support from various tech companies, banks, politicians, high net worth investors and billionaires, including PayPal, also triggered this rise.
The biggest hurdle for Bitcoin in the short term is the $ 18,500 resistance level. Above this level, there is very little resistance until the new record level.
Considering Bitcoin's 15-month bull market after the halving in 2016, the price of cryptocurrency can be expected to peak towards the middle and end of 2021.