Bitcoin had a blast to begin this year as the asset touch highs upon highs before settling down at this current price level. As of now, the digital asset has a $60,000 all-time high in its sights to buttress how successful it has been this year. The digital asset started the year trading at a region around $28,000 before hitting $58,000 in the late part of last month.
After touching the recent all-time high, the asset has seen a bittersweet movement as it has endured volatility to post a correction, make a rebound, and is now gunning for another all-time high record, as mentioned earlier. However, this is easier said than done, as most crypto experts know that the digital asset has to go through many phases before making all-important surges.
Institutional adoption is helping the space
While a newbie or a novice might see the digital asset as a booking enterprise, a seasoned expert knows that assets go through accumulation, different bubbles, and crashes, and other things. While this is something to note, the CEO of CryptoQuant, Ki-Young Ju, has mentioned some key metrics that have helped crypto rise to the position that it is today.
He pointed out that this recent surge saw something that the market of 2017 didn’t have, which is the massive institutional demands. While retail demand pushed the price of Bitcoin high during the 2017 bull run, firms like Microstrategy and the others have been able to add their support to the price of the asset this time around. He pointed out that a reason to show this is the steady decline in the balance of Bitcoin on exchanges as it went from an all-time high in 2017 to a time low towards the end of 2020 and is still declining.
Ki-Young Ju says Bitcoin to stablecoin ratio is another factor
Moving to another reason, the CEO pointed at Whales’s activities in the market and how they have been able to spurn the growth upwards. He says that one can see the proof in the inflow metric of Bitcoin on crypto exchanges. He points that a rise in the average amount of Bitcoin sent to exchanges would show that it is currently on the rise.
He pointed out that most Whales get their profits from retail investors’ actions, especially in times when there is fear in the market. With institutional investors taking the limelight now, Ki-Young Ju mentioned that one should follow all the large purchases that are happening in the space. He noted that people should always pay attention to the Coinbase Pro platform as major big investors use the platform to purchase their massive amount of Bitcoin.
Lastly, he talked about the value of stablecoins pegged to fiat currencies, especially the dollar. While Bitcoin is traded, most people hold Tether since they are stable, and their value remains the same irrespective of the movement in the market. He pointed out that people should always watch the ratio of stablecoin to Bitcoin in the market, which is another key metric.