The new DEFI platform enters the market! Earn passively - token sale 0.25 $ I'm going in!

Bitcoin price rally by 2021 to-be expected from five fundamental factors

By
Redakcja
-
5 min reading

Five key fundamental factors denote that Bitcoin is putting together for an extended uptrend by 2021. The price of Bitcoin (BTC) has been flourishing in between the ranges $8,600 and $10,000 for the last two months. BTC has been showing some volatility since May after a crucial rejection at $10,440.

Five key fundamental factors denote that Bitcoin is putting together for an extended uptrend by 2021. The price of Bitcoin (BTC) has been flourishing in between the ranges $8,600 and $10,000 for the last two months. BTC has been showing some volatility since May after a crucial rejection at $10,440. Nevertheless, there are five major fundamental factors which could lead to an extended uptrend by 2021. 

Based on the data from Skew, the 10-day realized volatility of Bitcoin decreased down to the lowest level of the year on June 24. This proves that the traders are taking precautions as BTC is at a crucial price point. The performance of BTC over the upcoming weeks could indicate the price trend throughout the years end. Basically, the sentiment of cryptocurrency traders on the medium-term outlook of Bitcoin remains optimistic. In the short-term analysts analyse try to learn about the weakness of BTC and other top cryptocurrencies due to external factors like the Covid-19 pandemic. 

 In the near future, strong macro factors mention BTC is on track for a firm recovery. The most important piece of information that justifies predictions of an optimistic trend is in the increase in “HODling” activity among investors. Rafael Schultze-Kraft, the chief technical officer at Glassnode, shares details about different HODling data and how there has been an increase in investor confidence. Let’s begin with Bitcoin’s supply which has not been changed for over a year has reached an all-time high, standing at 61%. It illustrates the shortage of appetite to sell BTC at the current price level. Shultze-Kraft says, “First, the obvious one: 61% (!) of Bitcoin supply that hasn’t moved in over a year that’s an all-time high. Moreover, 44% hasn’t moved in 2+ years (approaching ATH), and almost 30% hasn’t moved in 3+ years. Loads of hodling here.” 

Shultze-Kraft further pointed out that a metric called “HODler Net position change” shows investors total Bitcoin heavily in 2020. The data shows the disinterest of many retail investors to sell BTC, pointing out that: “There have been only 16 days since the beginning of this year, in which the BTC Hodler Net position change has been negative.” If the BTC HODler net position continues to be optimistic, then it proves that investors are not shifting funds from personal wallets to exchanges to sell. In March 2020, the price of Bitcoin went below $3,600 on many important future exchanges. 

Altana Digital Currency Fund chief investment officer Alistair Milne mentioned that if this drop could not break investors confidence them there are not many possible factors which could in the near future. Milne stated: “Similar levels of HODL last seen during a 3-month consolidation at around $400 before starting a two-year bull run…Guesstimate that this cycle will peak around 70%?”. Usually, the bull runs in the cryptocurrency market joined with an increase in HODL activity. During the start of 2018, the “HODL wave” of Bitcoin began to rebound. From March to July of that year, BTC rose from around $4,000 to $14,000. According to Philip swift, the creator of cryptocurrency market data platform lookintobitcoin.com, stated: “Such high levels of HODling have been present at the start of previous Bitcoin bull runs.” 

Since March 2020, the assets under management of the Grayscale Bitcoin Trust increased from $1.577 billion to $3.541 billion. The sudden increase in AUM proves that a somewhat same accelerating demand from institutional investors. Most importantly, United States institutions have a short selection of investment vehicles which could be utilised to gain exposure to Bitcoin. With the lack of an exchange-traded fund, the grayscale Bitcoin trust will most probably remain the go-to vehicle for institutional investors. 

The AUM of the Grayscale Bitcoin Trust reached an all-time high while the price of Bitcoin is down by more than 50% from its record high is seen as a positive mark. This proves that institutions have trust in the long-term trend of BTC, which is more than they did three years ago. Messari researcher Ryan Watkins, states that grayscale buying most of the Bitcoin is newly mined and can be inflated. Watkins says Grayscale only bought around 31% of newly mined Bitcoin ever since May 11: “Grayscale buys way less Bitcoin than many would think. Factoring in ‘in-kind’ purchases, Grayscale has only bought 31% of all new Bitcoins mined since the halving, far less than the 150%+ many have reported. This is just one of many misconceptions about Grayscale’s trusts.” Analysts believe that it is important to consider numbers which could actually increase the actual figures of the trust, in totality 31% of mined Bitcoin is still a substantially a high number. 

Currency Exchange rate Buy cryptocurrency

The new DEFI platform enters the market! Earn passively - token sale 0.25 $

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the Lushup Holdings FZ LEE. Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the tokeneo.com/news/pl website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is Lushup Holdings FZ LEE, Fujairah - Creative Tower, P.O.Box 4422 Fujairah, United Arabs Emirates.

The full document to read the Tokeneo privacy policy is available in this document.

Advanced settings can be changed in your browser.