In a strong push northwards, Bitcoin (BTC) is up 7.5% today moving past $54,000 levels and regaining a $1 trillion market cap. At press time, BTC is trading at a price of $54,386 with a market cap of $1.014 trillion.
While Bitcoin, and the overall crypto space, is popular for following the trends in the equity market, it seems to be opposite momentum this time. Despite some weak cues in the equity market and rising bond yields on the other end, the risk-asset has managed to hold well its position above $50K.
With the US 10-year treasury yield staying above 1.5%, the equity markets have turned jittery. However, Bitcoin (BTC) has shown strong resilience to this market momentum. Interesting, Bitcoin (BTC) has also shown resilience to the drop in the hedge assets like Gold which recently touched a 38-week low of $1730.
After tanking to $47,000 twice last week, Bitcoin seems to have entered a strong consolidation holding $45K as strong support levels as mentioned by Bitcoin analyst Willy Woo.
UTXO Realized Price Distribution. This is the on-chain, more precise version of volume profile. The peaks represent the price where most coins changed hands.
$45k upwards is very strong support.
Any dip (if you're are lucky) into $39k is a no-brainer BTFD.
— Willy Woo (@woonomic) February 27, 2021
On Sunday, March 7, Glassnode founder Rafael Schultze-Kraft spotted a huge on-chain volume wall of $1.2 million when Bitcoin was consolidating in the price between $46.6k and $48.6k.
This support is holding nicely.
And it got stronger! We now have a wall of 1.2M $BTC that moved on-chain between $46.6k and $48.6k.
That's 6.5% (!) of the circulating supply.
I'd be surprised if we go below anytime soon.
— Rafael Schultze-Kraft (@n3ocortex) March 7, 2021
On the other hand, the Bitcoin network has registered high activity so far in 2021. On average, the Bitcoin (BTC) network has settled more than $10 billion USD in daily volumes, Glassnode.
On the other hand, Bitcoin (BTC) supply at exchanges continues to march downwards. Over 35K Bitcoin have been over the last week from crypto exchanges, Glassnode.
Corporate Money Continues to Flow Into Bitcoin
The recent Bitcoin price rally comes following two big announcements of corporate investments. On Sunday, March 7, Chinese software giant Meitu a $40 million combined investment in Bitcoin (BTC) and Ethereum (ETH).
On Monday, March 8, Norwegian energy giant Aker ASA $58 million investment into Bitcoin via its newly floated entity SeeTee.
It seems that Tesla’s entry into Bitcoin has created a domino effect pulling other corporates towards it. Now with Asian and European companies joining, we can see more players putting their reserve cash into BTC.