The price of bitcoin moved from little over $11,000 in October of last year to a new all-time high above $58,000 earlier this month. Despite the massive rise, analysis shows that bitcoin’s bull run likely isn’t over as fear of missing out (FOMO) hasn’t set in yet.
According to researchers at on-chain analytics platform Whalemap, statistics covering bitcoin buys between $5 million and $7 million concluded that despite the recent highs bitcoin still hasn’t hit its “macro top,” as bull runs in 2017 and 2019 saw buys of a similar size, and only retraced after these investments hit a peak.
On social media, Whalemap shared a chart that shows these large BTC buys are far from the highs seen in 2017 and 2019, and have in fact not started receding yet, implying bitcoin’s recent correction is a healthy one before the cryptocurrency’s price moves up again.
CryptoCompare data shows that in the last 24-hour period, bitcoin moved from around $51,000 to a $44,600 low before it started recovering. As CryptoGlobe reported, multiple large transactions have been spotted leaving cryptocurrency exchange Coinbase to custody wallets, implying institutional investors are still buying bitcoin.
The CEO of crypto data firm CryptoQuant, Ki Young Ju, recently pointed to a massive 13,000 BTC movement out of the San Francisco-based cryptocurrency trading platform and pointed out the funds “went to multiple Coinbase custody wallets.” Per his words, this is the “strongest bullish signal” he has ever seen.
Following up on his tweet, Ki Young Ju noted significant outflows from Coinbase at $48,000, which suggests large investors are accumulating BTC and that the major reason for the price drop is the 10-year Treasury note’s yield going up.
An ongoing rally in U.S. bond yields has been putting pressure on tech stocks and the market itself. Popular analyst Alex Kruger noted that interest rates going up could have a negative effect on assets that benefitted from them dropping, including gold and bitcoin.
Featured image via Pixabay.