As reported from all sides in line with Wallebi, Bitcoin price has been going aggressively since the beginning of 2020, Q4. The major cryptocurrency hit records in recent uptrend. In this Article we are going to take a look at Bitcoin Recent Bull Run Analysis and reasons why its price is going mad.
Bitcoin Recent Bull Run Analysis ; Major reasons
Recent reports show that Bitcoin could pass the $30K resistance level and did not stop. Following Bitcoin bullish market news, its price hit $34K for the first time since 2009 and it seems the price is not going to slow down or halt the onrush. However, there are a few reasons why Bitcoin price broke resistances.
Analysts and experts believe that there are three main reasons for Bitcoin recent bull run towards $34K. The reasons consist of retail investors interest in Bitcoin, Institutional investors Bitcoin-Related activities and recent $ 1.15 billion purchase.
Eric Wall stated that retail interest in Bitcoin is now growing. On the other hand, Google Trends data show a significant growth in searching for Bitcoin which occurred for the first time since $20k peak. Thus, analysts believe that retail investors are playing a noticeable role.
As reported previously, institutions and organizations allocated significant funds to Bitcoin in the last three months of 2020. Microstrategy is one of those companies which allocated large amounts of money to Bitcoin in several steps. Large purchases of Bitcoin by companies would diminish the number of Bitcoins available to traders and drive the price up. It is notable that only 22 % of Bitcoins are left for traders.
Finally, at the weekend, an unusual withdrawal $1.15 billion (equal to 35k $BTC) from a Coinbase wallet made trading bots start buying Bitcoin. This large outflow shows there may be a large purchases by whales and it is not announced yet. Anyway, such a significant buy triggered trading bots and drove the price upper.