Bitcoin's price has surpassed $ 35,000 amid the high volatility in the stock and crypto market (behind Elon Musk's Twitter update), with the likes of GameStop Corp and Dogecoin rising to the panel over the past 24 hours. According to many on-chain analysts and market watchers, this increase in trading activity is likely a positive sign for Bitcoin as there will likely be an increase in investment flows and Bitcoin may eventually surpass the range-dependent price trend with more momentum.
Currently, the entire narrative of Bitcoin's price increase is largely based on institutional demand. Burning question ergo - With Grayscale premiums falling, is there enough institutional demand to continue Bitcoin's price rally? Will there be more investment flows to Bitcoin?
Konstantin Anissimov, the Executive Director of CEX.IO, was one of those who commented on the matter and claimed the execution:
"Institutional Investors are not the key to driving Bitcoin's bull run because it's a way the market as a whole can be softened, become better and more efficient. The price action itself will be affected to a toxic degree, yes - but if anything happens, it's The impact will be positive. Institutions are aiming for long-term deals that act as a preventive measure and prevent Bitcoin from collapsing in 2018 somehow. "
Increase of Institutional Investors
This is an interesting development as the number of both retail and institutional participants in the market has increased, but also the number of HODLing wallets over 1000 Bitcoins has also increased. According to Anissimov, the active customer base on CEX.IO nearly doubled in 2020.
Also, legal entities are very active and especially 60% -80% of such users are constantly present and every trade is operating. Such an increase in stock exchanges signals an increase in corporate interest that could continue until 2021.
It should be noted here that in certain periods of 2020, the turnover share increased to 51.3% compared to 2019, when the corporate senior turnover share was only 22%. During periods of explosive activity in stock exchanges, it can sell to customers at a slower rate.
This could explain the testing of water holdings as Bitcoin continues to depend on the range below the $ 35000 level (7). Due to the increased investment flow and institutional interest, Bitcoin's will not really be surprising to the level of promotion in the near term, which is an app where a tech entrepreneur's bio updates are not accelerated.
