Is Bitcoin ready to reach $50,000?
BTC whales have been growing on this recent pullback plus other highlights this week
PayPal Sees Record Crypto Demand, BTC Whales at ATH, Crypto-friendly Gary Gensler to Head SEC, Mark Cuban Says He’s An Early Crypto Holder, Goldman Sachs Says Bitcoin is Maturing
Total crypto market cap is $1.04T, up 10.05% over today
Bitcoin dipped to 30k after touching 42k
Paypal's crypto buying and selling is up 950% since Jan 1
Coinbase and Binance see record breaking volume
Top 100 richest addresses gain 354k BTC worth $12.7b
Bitcoin advocate, Gensler, to head the U.S. SEC
Bitcoin futures open interest back at all-time-high
Bitcoin begins to recover from its 30% dip
After touching $42,000, Bitcoin dipped nearly 30% to $30,000 on Monday but has quickly began to recover. A total of $410 million BTC long positions in futures contracts were liquidated on Binance – marking the largest daily value to date.
Historically, Bitcoin goes through multiple 30-40% dips in a bull run. Between 2016 to 2017, we saw at least six. On November 13, 2017, Bitcoin hit a low of $5,844 then increased 240% to $20,000 just 34 days later. During the 2017 run, we saw Bitcoin surges an average of 150% between every major 30%-40% dip.
Retail money may be finally arriving
Coinbase’s daily volume hit $9.56 billion on Monday, more than the total volume for Q1 2019. On the same day, Binance reached $30.66 billion. That’s roughly 38% greater than the exchange’s last high of $22.1 billion on January 7, 2021. Paypal's crypto buying and selling also hit a new all time high of $242 million in daily volume, up 950% since January 1, 2020. eToro has also reported struggling to meet demand on their platform as their crypto trading volume surges 25%.
The number of Bitcoin whale addresses are at an all time high
The number of addresses holding at least 1,000 BTC has hit an all time high during this recent sell-off, while addresses holding <0.01 BTC dropped by 10,000. Year-on-year, whale addresses have increased by nearly 25% and have risen by 200 over the past two weeks. The number of addresses with 10,000+ ETH has also increased +4.2% from 1,171 to 1,220 over the past fourteen days while ETH reserves on exchanges has dropped by 8% over the past 24 hours (mainly due to Bitfinex’s new cold wallet).
Over the past thirty days, the top 100 richest Bitcoin addresses also gathered 354,381 more BTC worth $12.7 billion, an increase of 16%. It’s worth noting that some of these addresses belong to crypto exchanges.
Biden to name savy-friendly, Gary Gensler as U.S. SEC chair
Gensler was chair of the Commodity Futures Trading Commission (CFTC) from 2009 to 2014, and since November has led Biden’s transition planning for financial industry oversight. Gensler was a also blockchain professor at MIT, lecturing on Bitcoin and digital currencies. As a long time advocate of Bitcoin, his selection as SEC chair could significantly improve the chances of a Bitcoin ETF over the coming years.
Is Bitcoin ready to reach $50,000?
Despite the drop in price, Bitcoin continued to hit all time highs in other key metics such as; mining difficulty, hash rate, illiquid supply, non-zero BTC addresses, active addresses and active entities.
So what’s next? Well, we saw funding rates overheat on Monday and it’s starting to happen again. The Bitcoin futures open interest is also back to all-time high, which can make a another short-term dip more likely if the market becomes too overcrowded. However, the macro outlook is still bullish as Bitcoin undergoes a supply crisis, exchange outflows continue and Grayscale resumes new investments into it's Bitcoin trust.