Bitcoin / USD: Technical Analysis
At the moment the future outlook for the bitcoin price looks very promising in the next few years, as last week was incredibly bullish after the coin jumped to its highest since January 2018 near $16,000 to keep close to all-time highs below 20%.
But it has seen turbulence between highs and lows this week, trading between the $15,000 and $15,800 ranges, as analysts and traders remain divided over the near-term prospects for the bitcoin price.
Increased institutional interest in Bitcoin
The cryptocurrency achieved an increase in its prices by more than 33% during the month of October, after it closed its transactions above $13,800, after stabilizing for a while around the $11,200 level, to record the largest monthly rise in its history.
with persistence Bitcoin sentiment On the rise after the uncertainty created by the US presidential election, institutional investors appear to be becoming more interested in the crypto markets. Towards the end of last month, the Bitcoin-backed Grayscale Trust saw record inflows of $215 million (15,907 BTC), surpassing all weekly inflows it has seen since the fund's inception. .
At the current rate, it is estimated that Grayscale is on track to hold 500,000 bitcoins by the end of 2020, which represents 2.7% of the circulating supply of the currency. year 2020.
The increase in institutional investment is also shown in Bitcoin futures contracts Chicago Stock Exchange Trading volumes of 6,700 futures contracts are up about 75% more than the average in 2020 so far.
Macroeconomics contributes to the rise
Macroeconomic factors such as re-closures due to the expansion of the second wave of the Corona virus in Europe and the United States will have a significant inflationary impact and this will lead to huge consequences such as printing money, there is growing concern about the potential adverse effects of inflation on paper currencies especially the dollar.
In addition to these recent major developments, online payments company PayPal has announced that it will launch cryptocurrency payment services in early 2021, even turning JPMorgan's predictions into an upward trend for the leading cryptocurrency, saying that the asset has a potential long-term upside if It was in close competition with gold as an alternative asset.
As Grayscale mutual funds see investments as being dominated by hedge funds, this is indicative of the fact that Bitcoin has also become a hedging tool like gold to protect investors from market uncertainty.
The price of Bitcoin has already risen over 115% since the beginning of the year compared to gold which is up less than 30% and the S&P 500 is up about 8%. Cash that returns a negative return.