Bitcoin is experiencing a major bull run, the main catalyst is the PayPal news but there is another element that could also be contributing and it is a massive wave of purchases of BTC in OTC.
Bitcoin, the most desired asset of the moment
As we previously reported on CryptoTrend, Bitcoin has had a very positive week after managing to position itself at its 2020 high above $ 13,000.
Bitcoin was boosted from the news that PayPal would be introducing cryptocurrencies to its customer very soon. It was evidently seen by many as a key milestone for crypto adoption.
However, in the background, what is happening is a clear increase in demand for BTC.
Purchase of BTC in crypto OTC soars
Yesterday Crypto Quant reported that if we look at the 30-day moving average of Bitcoin’s cash flow index on crypto exchanges, we may notice that the purchase of Bitcoin OTC has accelerated.
This implies a clear increase in demand while the supply remains fixed and, consequently, becomes increasingly limited.
In this way, the available supply of Bitcoin decreases as OTC buyers absorb BTC and retail investors take their Bitcoin from crypto exchanges for cold storage.
Consequently, the dynamics of the crypto market continues to tip the balance in the direction of higher prices. And, if it continues, we could see a clear bull run.
Signals and indicators
It seems that all the indicators in the crypto market indicate that BTC has no ceiling for its price.
In fact, a few days ago Glassnode Indian what “98% of all Bitcoin UTXOs are currently in a profit state. A level not seen since December 2017, and typical in previous BTC bull markets.
Recall that, in 2017, BTC hit an all-time high of $ 20,000 before plummeting in the blink of an eye. Glassnode’s comment above might scare us, but the firm explains that the ongoing rally is significantly different.
The two key differences are:
- This time Bitcoin has had a slow but sure growth that has allowed it to establish support levels.
- Institutional and, in general, spot demand is very high.
How far will Bitcoin go? Will it have a limit? Let us know your opinion in the comment box.