After consolidating a while between $35,000-$36,000, Bitcoin (BTC) continues to remain under pressure. Today, BTC has corrected another 3.5% and is trading at $34,567 levels at press time. While retail players might think of booking profits before it falls further, we would like to warn you that whales and institutions could be scooping your supply.
As per data by on-chain analytics platform Glassnode, Bitcoin is currently under the biggest liquidity crisis in years. There’s a massive withdrawal of funds at the exchanges and big players are here to swallow the supplies.
#Bitcoin is seeing the largest depletion of liquidity since years.
Not only are funds being withdrawn from exchanges, but coins are continuously moving to strong hands.
In the past 30 days, around 270,000 BTC moved to entities considered HODLers.
— glassnode (@glassnode) January 20, 2021
The latest information from Glassnode comes a day after we at CoinGape reported that the dormant BTC whale accounts are on the rise while traders have now resorted to profit-booking. On the other hand, the digital asset manager doesn’t seem to be stopping anytime soon on its Bitcoin acquisition spree.
Within 48-hours of Grayscale purchasing 16,000 Bitcoin for ~$600 million, Grayscale makes another purchase of over 8700 Bitcoins worth $305 million in the last 24-hours. Just over the last month, Grayscale purchased near to 65K Bitcoins pouring a whopping $2.2 billion in total. As per the latest update, the total assets under management of the Grayscale Bitcoin Trust (GBTC), at the current BTC price, stand at $22.4 billion.
Grayscale adds a further 8,762 #Bitcoin worth $305 million over the past 24 hours. Over the past 30 days, their total BTC holdings have increased by 64,874 BTC, worth $2.2 billion. pic.twitter.com/FDyRQCSRg0
— Bloqport (@Bloqport) January 20, 2021
Bitcoin Volatility Low w.r.t. S&P 500
With the current scenario and Bitcoin (BTC) price under pressure, retails investors must be confused as to whether book profits or keep holding! Citing data from Bloomberg Intelligence, crypto analyst Dan Tapeiro points out that the Bitcoin relative volatility w.r.t the S&P 500 is pretty much low, the levels we saw during 2012 and 2016 before the previous bull runs.
Thus, Bitcoin could probably be just starting its journey for a massive rally ahead this year. “Bitcoin could 5-8x from here in 2021,” he adds.
In other news, while there’s have been continued speculations of Tether’s USDT dumping in recent times, analyst nic-Carter predicts (citing data from CoinMetrics) that USDC issuance could actually be leading to BTC price increase.
through robust statistical analysis I have determined that USDC issuance causes BTC price to increase ???? /s pic.twitter.com/W8NoLc86Ou
— nic carter (@nic__carter) January 20, 2021
Leave your comments below on your Bitcoin price predictions going further in 2021.