Analysts and market experts believe that the recent jump in the price of Bitcoin to $ 22,000 is different from the bullish market in 2017 due to the fear of falling behind (FOMO) of micro-investors.
To Report The Coin Telegraph crossed the $ 20,000 mark, reaching a new high of $ 22,000. Although it is not difficult to find similarities between the current jump and the uptrend in 2017, many believe that the foundations of the current trend are much stronger than in 2017.
Bitcoin, a safe haven for investment
Among the various reasons that have given rise to the current strong uptrend, investors’ view of Bitcoin as a safe haven is of paramount importance. Unlike in 2017, today investors are accumulating bitcoins with a specific goal. The function of Bitcoin as a safe haven for investment has attracted many to this digital currency. In the meantime, smart investors played a significant role in this market.
Over the past few years, Bitcoin has served as an efficient value store. This year, Howing made the digital currency king’s rarity feature even more apparent, and its fans reached the highest level in history.
A Chainanalysis analyst wrote in a report last month:
Those who buy bitcoin for the first time and other bitcoin buyers are looking to pay fiat currency in exchange for bitcoin. Bitcoin is like a safe haven for them in the face of major trends, which justifies the current high demand.
2020 can be called the year of entry of investment institutions and large-scale investors into the Bitcoin market. Unlike in 2017, when the price jump was due to the entry of small investors into the market, this time the smart money that entered the market by Carbald investors accelerated the rise of bitcoin prices.
Paul Tudor Jones, Gary Skill, PayPal, Square, Copper, Micro Strategy, and Ruffer Investment were some of the big names who turned to Bitcoin in 2020 and invested some of their trading capital.
Even Jim Cramer, the well-known host of the CBC network and Mad Money program, recently announced that he had bought bitcoins for $ 18,000.
In 2017, these names were vacant in the bitcoin market, and investors played a major role in market trends; As a result, the Fear of Loss (FOMO) created in 2017 pushed the price of Bitcoin to $ 20,000.
Chinalis refers to wallets in which bitcoin is held as an investment as a factor in the price of bitcoin. The number of these wallets, which according to Chinalis are “non-convertible wallets”, has increased compared to 2017.
These wallets spend less than 25 percent of their input. Currently, about 77% (more than three-quarters) of the 14.8 million available bitcoins (available bitcoins) are held in such wallets. Chinalis states that this rate has not changed for 5 years or more. In part, Chinalis said:
This means that if demand increases, there will be only 3.4 million bitcoins for buyers.
As shown in the chart below, the number of bitcoins held for investment has increased compared to 2017; In other words, investors buy bitcoins for the long term and we rarely see bitcoins bought for trading purposes and withdrawing profits.
Bitcoin Active Addresses
GlasNow data show that, unlike in 2017, when the Bitcoin network operated in line with the price of Bitcoin, over the past two years, unique addresses on the Bitcoin network have been growing steadily.
About 19.6 million bitcoin addresses sent or received bitcoins in November; November 2020 was the third most prosperous month in this regard.
GlasNow statistics show that as of June this year, we saw a new record for investors with a minimum hold of 0.1 bitcoins. According to reports, more than 2.75 million addresses have consistently held more than 0.1 bitcoins since April 2019.