BTC demand: BTC approaches $70,000 amid increased adoption
2 min readTL:DR Breakdown
- As BTC demand by major institutions has seen an increase over the past few months, the bullish run of BTC has increased.
- The surge in the price of BTC is attributed to its increased demand.
As BTC demand by major institutions has seen an increase over the past few months, the bullish run of BTC has increased. That said, the price surge is a consequence of BTC demand. The world’s largest Cryptocurrency by market caps has gained passage above its previous resistance point and heads towards the $70,000 mark.
The electric car manufacturing company Tesla has led a large number of Institutions to convert some of their wealth to BTC and thereby serving as an “inflation point,” according to Bloomberg. The recent development in the crypto world has now become the fear of crypto enthusiasts. They are scared of being left out of the future benefits that could arise if BTC becomes the world’s benchmark crypto asset.
This fear has, however, increased BTC demand as Institutions from World leading nations like the US and China are all racing to have BTC amongst their assets. During the past week alone. Meitu, a Chinese tech company, bought about 175 BTC, while MicroStrategy — a US business analytic company bought around 253 BTC.
Grayscale, a Crypto Investment company, purchased BTC and several other cryptocurrencies worth around $1 billion. This recent action brings the company’s AUM (Assets under management) to $46.10 billion. JP Morgan, a US investment bank, claims that the increased BTC demand provides a conducive environment for the launch of a BTC ETF in the United States, which has the potential of reducing entry barriers, thereby further increasing BTC demand.
Effect of the Increased BTC demand on BTC all-time high aspirations
As the BTC demand increased within the past week, BTC price rose above a strong resistance point within the last 24 hours. From its previous month’s price chart, BTC has escaped an inverse head and shoulder setting. From the chart, it can be projected that BTC can rise by about 15 percent to the 141.1 Percent or 161.8 percent Fibonacci retracement ground.
These respective grounds place BTC prices at $67,450 and $70,330. For these prices to materialize, BTC must continue its trade above the $59,300 mark. Otherwise, a massive fall in BTC price would occur. The negatives can, however, be prevented if BTC demand can increase progressively.
