Bitcoin’s buying pressure is finally being represented through the actual price of it after it went through a consolidation period for about a month. The world’s first cryptocurrency seems to be pushing past the crucial $60,000 resistance level, which would make it capable of pushing up to $70,000 if allowed to.
Plentiful Hype Surrounding BTC
Bloomberg gave a report about the matter at large, asserting that Tesla’s decision to put some of its wealth into Bitcoin had been an “inflection point” for the world’s biggest cryptocurrency. As it stands now, the overall narrative for crypto has shifted, to one focused around FOMO regarding the asset potentially becoming a global benchmark.
As a testament to this, Bitcoin has seen its demand raise up to new all-time highs, with every institution from the US to China tumbling over each other to grab a piece of the world’s biggest cryptocurrency.
Bitcoin Being Hoarded Like Gold
Meitu, a China-based technology company, had scooped up around 175 Bitcoin within just the past week. This amounts to an approximate aggregate value of around $10 million. Microstrategy had also made big headlines, with the business analytics firm managing to pull in 253 Bitcoin for the average price of $59,339.
Grayscale managed to buy another $1 billion in crypto, predominantly Bitcoin, as well. Thus, Grayscale boasts a total of $46.1 billion in Assets Under Management.
Derivatives Gaining Traction
Another key factor to consider is the derivatives market being spawned from Bitcoin. As the asset gradually grows and matures in the spot markets, its derivatives markets counterpart has seen a growth in interest, as well.
JPMorgan gave a public statement about the matter, as well, praising the overall “richness” of Bitcoin futures. The CME BTC contract was highlighted, in particular, showing that it offers a 25% annualized slide in relation to the spot price. This could be even higher in unrelated exchanges as well, according to JPMorgan, going up as high as 40% in value.
The US-based investment bank kept to its argument regarding Bitcoin and that the rising demand for the asset, as well as other derivative products from it, makes for an ideal breeding ground to launch an ETF based on Bitcoin within the US. According to the banking giant, this ETF product could create massive amounts of new demand for the asset class by reducing the barriers of entry significantly.