Since last week Friday, Bitcoin has been moving from high to high, a momentum that it brought into the new year from 2020. As of yesterday, Bitcoin already registered a huge upward movement in the crypto market, amassing nothing less than 40% eight days into the new year.
Bitcoin recorded a massive price move and sold at around $41,000 but has since moved close to $39,000 as it witnessed a small price correction. Backing up the movement of Bitcoin in the market, several analysts have said that Bitcoin is still trying to enter new all-time highs because demand is presently more than supply in the sector.
Buying pressure still in the crypto market
Presently, many entities, including high value and retail traders, are holding Bitcoin with the hope that the asset continues to skyrocket in the days to come. Glassnode released recent data which showed that the total Bitcoin presently moving around in the crypto market is about 18,594,037 Bitcoin, and traders and investors are still looking to buy more.
According to the head of CrossTower, Chad Steinglass, the latest acquisition and buys from institutional and retail traders have been able to trigger the bulls, which has seen them carry the leading digital asset to conquer various heights since last year.
He also noted that the way traders are holding in the market had made demand surge, which is one of the driving factors that is always needed to drive the price of digital assets high. Even those who do not own a stake in Bitcoin are jittery with how they are seeing the price of the digital asset surge, and most of them are hoping to move into the network triggering the fear of missing out.
Most people are now borrowing stablecoins in a buy Bitcoin. The top-ranked stablecoins boasts of nothing less than $28 billion when its market capitalization is mentioned. Presently, Tether is leading the pack because, according to CoinGecko, the stablecoin boasts of about $22,916,992,958 in market capitalization.
Coronavirus pandemic influenced Bitcoin price
Based on many factors, the buying pressure has been compounding since last year, with the coronavirus pandemic one of the major reasons the pressure has been so much. The coronavirus pandemic period saw most entities take their payment services online while so many investments were buying up the digital asset to hedge against the incoming inflation. Even though experts note that a bearish run cannot be ruled out, most of them are making a case for Bitcoin reaching $100,000 before the end of the year.
The Bitcoin derivatives market is seeing great movements, with derivatives firm OKEx announcing that they recorded a massive liquidation of about $1 billion in the space of 24 hours. This is a record figure since the one recorded in November 2020, with most of them being contracts in the long term. BitMEX also recorded liquidation of about $100 million, making a case for the success that has been witnessed in the derivatives firms.
