Big banks are getting into crypto
Bitcoin has broken through the $ 55,000 price level and remains at that level. The altcoin market is barely growing while BTC is on the rise. This growth has helped BTC’s capitalization outperform the capitalization of big companies like Facebook, Tesla, Berkshire Hathaway, etc.
In the previous weeks, we saw a resurgence in interest in BTC among major investors via Coinshare data. And BTC remains the first choice for these investors.
Not only good news from investors, but also current on-chain data shows that BTC and ETH have been withdrawn from the stock market very large and almost continuously in the past few times. The accumulation of BTC gradually leads to a gap between supply and demand and thus to price reaction.
Banks see a great demand from their customers, they are also gradually entering the market. US Bank, the fifth largest bank in the US, is expected to announce custody services for fund managers. The coins supported by this bank are BTC, BCH, LTC and later ETH as well as other altcoins. This service is a great choice for customers who want long-term BTC storage and want the security of asset storage.
“Digital assets are too big to be ignored. We believe that crypto-based digital assets can form a whole new asset channel ”- Bank of America, the second largest US bank, was also“ optimistic ”about the long-term prospects for crypto, BTC, ETH, NFT, DApp. This bank knows the diverse range of crypto not only BTC, but also many other areas such as NFT, Dapp.
The President of El Salvador is increasingly promoting the use of BTC in human payments. The country has announced a $ 0.20 per gallon (3.7 liter) reduction for people using Chivo wallets to pay with BTC. Many believe this will increase the demand for BTC.
During this BTC bull run, many people think, compared to previous bulls, that the 2012 BTC price is more likely to hit two similar highs.
Besides BTC, many altcoins have very strong growth in these 3 days like MTOM, AVAX, LUNA, … Therefore, it is normal for altcoins to slow down when BTC grows. We also see this when BTC picks up sharply.
The sharp rise in price also made the rate of BTC profitable, well over 90% according to on-chain data. The times when the BTC price is making a big profit also come with the need to take profits from investors.
The number of BTC deposited on the exchange in the past few days has increased. The deposit amount on the floor is higher than the withdrawal amount. However, this difference is not significant.
However, in the past few days, we haven’t seen any longtime investors move or sell BTC. The Coin Days Destroyed indicator shows no signs of a sudden spike.
The number of stable coins on the stock exchanges also increased. This is often seen when there is a need to hold stable coins waiting to buy BTC when needed. A good sign for the market.
Miners are still in trend to keep stocking BTC. They show no signs of pushing BTC onto the retail floor.
In general, the overall trend of BTC on the exchanges so far continues to lose. The amount of BTC on the exchange is decreasing due to the need for long-term BTC storage.
Although the difference in the number of long / short orders on the exchanges is quite even. However, we are still seeing an overall surge in futures orders since September 26th.
If investors are more optimistic about price developments, the volume of future orders will increase if the price suddenly drops, which leads to the liquidation of these orders.