The current events suggest that bitcoin bull rally may start soon. The corporate sector is investing in bitcoin which will push BTC price to new heights in the upcoming weeks.
The bitcoin bull rally was one hell of a ride in the month of January. Bitcoin broke all previous records and reached a new peak of $42k. Moreover, the ever highest number of bitcoin addresses were active in the month as well. The companies like grayscale are buying more BTC than what is being mined. The price surge seems inevitable in this scenario.
Here are two big factors that may bring the second phase of bitcoin bull rally.
The trust in bitcoin is increasing over time. Despite its volatility, the currency is now seen as a digital alternative to cash. It is leading to surging corporate buy-ins.
According to a report by ARK Invest, even 1% allocation from S&P 500 companies can cause the bitcoin spot prices to increase by $40K. Furthermore, the 2.55% allocation will push the price to $500K.
The institutional adoption of bitcoin no longer seems like a distant dream. Countries across the globe are bringing crypto-friendly regulations to facilitate the use of digital currency.
Investors Buying More Bitcoin:
The top 100 wallet addresses have topped up their accounts with more bitcoins in recent few months. Most of these wallet addresses belong to big exchanges like Binance. The downward price movement and corrections haven’t deterred the crypto enthusiasts from buying more bitcoin.
The indicators like Spent Output Profit Ratio (SOPR) also depict the returning of the bull rally. Investors are considering the dip an opportunity for buying.
As bitcoin goes to the moon, altcoins will also follow the suit. At the time of this writing, bitcoin is at $35K while the 2nd most famous altcoin Ether is closing above $1,500. These are clear signs of a bullish trend. Let’s see where the candles go next.