Based on the report, addresses holding over 1,000 BTC rose to document highs in January on the heels of sizable retracements — evidencing sturdy dip-buying from whales regardless of the comparatively excessive value of Bitcoin.
Mixed with constructive enterprise developments within the business, corresponding to Mastercard’s decision to integrate certain cryptocurrencies and BNY Mellon’s newly launched custody services, CrossTower believes the outlook stays bullish for the digital asset markets. The agency additionally described the expansion of company Bitcoin treasuries, corresponding to Tesla’s $1.5 billion BTC acquisition, as strengthening the bullish case.
“We imagine the document quantities of addresses holding 1,000+ BTC in current weeks is proof of rising institutional curiosity and certain displays the numerous headlines in January and February of institutional traders turning into lively in Bitcoin,” Martin Gaspar, analysis analyst at CrossTower, informed Cointelegraph.
“In our view, many institutional traders are getting into with a buy-and-hold mentality given their understanding of Bitcoin as digital gold. The on-chain information means that these traders, historically seen as sensible cash, noticed the January value weak spot as a chance to amass BTC or enter the area, which helps our bullish view of BTC.”
CrossTower additionally famous a pointy decline within the sum of Bitcoin held on centralized exchanges amid document stablecoin holdings and quantity, describing the development as offering additional bullish momentum to the markets. Analyzing information from CryptoQuant, CrossTower discovered stablecoin volumes on crypto exchanges totaled $7.4 billion as of February — up practically 159% from December 2020.
BTC price briefly fell below $50,000 on Monday however has since regained its footing above $53,000. Regardless of the sudden correction, Bitcoin has appreciated by greater than 12% over the previous week. 12 months-to-date, the BTC value is up virtually 85%, in line with CoinMarketCap information.