In a report shared with Cointelegraph, institutional cryptocurrency trading platform CrossTower asserted that large investors will not let Bitcoin fall back below $ 50,000.
According to the report, addresses holding more than 1,000 BTC surged to a record high in January following sizable pullbacks – demonstrating a sharp decline in trading activity from whales despite the relatively high Bitcoin price.
Combined with positive business developments in the industry, such as Mastercard’s decision to integrate certain cryptocurrencies and the newly launched custodial services of America’s oldest bank BNY Mellon, CrossTower believes that the outlook remains optimistic for the digital asset market. The company also described the growth of its Bitcoin coffers, such as Tesla’s $ 1.5 billion acquisition of BTC, as a consolidation in the case of a bull run.
Martin Gaspar, research analyst at CrossTower, said: “We believe that the record number of addresses holding more than 1,000 BTC in recent weeks is proof of institutional interest in January. and February became more active on Bitcoin.
“In our opinion, many institutional investors are engaged with a buy and hold mentality because they understand Bitcoin as digital gold. An opportunity to either buy BTC or enter the space, which supports our bullish stance on BTC. ”
CrossTower also recorded a sharp drop in the total number of bitcoins held on centralized exchanges amid record stablecoin holdings and volumes, describing the trend as providing additional bullish momentum to the market. Analyzing data from CryptoQuant, CrossTower found that the volume of stablecoins on cryptocurrency exchanges totaled $ 7.4 billion in February – a nearly 159 percent increase over December 2020.
The price of BTC quickly dropped below $ 50,000 on Monday but then regained its position above $ 51,000. Despite the sudden correction, Bitcoin has risen more than 8% in the week and 60% in the past 30 days, according to Coingecko data.