Bitcoin experiences one of the basic laws of economics: The law of supply and demand, says Chainalysis.
Bitcoin on its way to $ 20,000
Chainalysis published its latest research today on its blog where it points out that institutional investors are the ones to thank for the supply drought and, consequently, the price rise of Bitcoin.
“The price of Bitcoin is increasing because the demand for BTC is increasing at a time when there are relatively few Bitcoins available to buy”Chainalysis wrote.
According to Chainalysis research, the amount of liquid BTC is similar to the bull run of 2017. However, the amount of Bitcoin held in non-liquid wallets is much higher, accounting for 77% of the 14.8 million Bitcoins mined.
Consequently, Chainalysis found that only 3.4 million Bitcoins are currently available on the market and demand continues to increase.
On the other hand, as we reported today in CryptoTrend, QCP Capital came to the conclusion that there is a large amount of the leading crypto stagnant thanks to China, generating crypto shortages.
BTC will replace gold
BlackRock’s Rick Rieder assured to CNBC that Bitcoin could replace gold. The leading crypto is “here to stay,” Rieder said.
«I think it is a durable mechanism (the leading crypto), I think it will take the place of gold to a large extent? Yes, I do, because it is much more functional than passing a bar of gold », explained.
“However, Rieder confessed not to be a Bitcoin bull and, therefore, crypto does not appear in his investment portfolios.”
Jason Williams prefers to sell his old cars for crypto
Jason Williams, co-founder of Morgan Creek Digital, claimed on Twitter that he sold his 2007 Chevrolet Suburban for 0.4 BTC.
Consequently, it appears that the Morgan Creek co-founder preferred crypto over cash. Let’s keep in mind that, at this time, an increase in the valuation of the crypto leader could benefit Williams.
Crypto addresses with 1 ETH hit record
In accordance with Glassnode, the number of Ethereum (ETH) crypto addresses with a low of 1 ETH hit an all-time high yesterday.
According to the CryptoTrend tool, Crypto Online, at this time crypto is valued above $ 500, thus continuing the uptrend that began in November.
Consequently, Bitcoin may be king, but Ethereum is keeping pace.
The leading crypto has a higher market capitalization than Mastercard
The behavior that Bitcoin has had this year has been spectacular. It now managed to rank 16th among the world’s largest entities based on market capitalization, according to Asset Dash.
This after reaching a market capitalization of almost USD 335 billion, surpassing Mastercard and giants like PayPal, Nvidia and even Disney.
The first three places on the list are occupied by Apple, Microsoft and Amazon. Bitcoin is right behind Procter & Gamble and ahead of Nvidia and Mastercard.
In a few lines …
- Morgan Creek Capital registered a Bitcoin crypto fund, called the Exos Risk-Managed Bitcoin Fund, with the SEC.
- Masayoshi Son, founder and CEO of SoftBank Group, confessed to losing $ 50 million in crypto when he sold his Bitcoin in 2018.
- Scott Melker assured that the next Bitcoin pullback could be the best opportunity to buy the crypto.
Will Bitcoin continue to experience supply and demand? Let us know in the comment box.