Largest Institutional Investors Usher in 2021 for BTC and ETH
The new year has started off with a major price rally, led by demand from some of the largest institutional investors for Ethereum and Bitcoin, which has resulted in the overall cryptocurrency market cap to approach $800 for the first time since January 2018.
Bitcoin (BTC) has been majorly leading the market momentum over the last few months along with some of the top-performing altcoins like Ethereum (ETH), Litecoin (LTC), and Chainlink (LINK).
As of writing this article, Bitcoin (BTC) is just short of $30,000 levels hitting an all-time high above $29,800. Over the last month, BTC has had a massive price rally surging nearly 50% by smashing previous records and making new ones every passing week.
Bitcoin Price Prediction Fueled by Largest Institutional Investors
The Bitcoin (BTC) price rally has been unstoppable and fundamentally stronger with massive institutional inflow coming into the cryptocurrency. Bitcoin (BTC) has been throwing big surprises over the last few months and it is a bit difficult to predict any further price momentum knowing that it has surged 50% in December 2020 itself.
Thus, one might want to be a little cautious at this moment and wait for the dips to buys BTC at some discount. Crypto analyst Joseph Young writes that Bitcoin will probably behave the same way at $30,000 as it did while trading at $20,000 levels. Also, he says that there’s been a massive sell wall currently at $30,000 levels on crypto exchanges Bitfinex and Binance.
On the other hand Young also mentions that investors have been heavily buying Bitcoin on Coinbase in the last 48 hours. There have been massive BTC outflows currently on Coinbase as most of the BTC purchased are moving to cold wallet custody.
Leading analyst from CryptoQuant, Ki-young Ju, notes that over 12,000 Bitcoins have moved out of Coinbase and went to multiple cold wallets through institutional OTC deals. He notes that breaking $30,000 could be a bit tough, but institutions continue to make massive purchases even at this stage.
Note that institutional purchases happen usually for the long term and one must make prudent decisions based on their goals with the BTC investments. It is very much possible that the pullback won’t be sharp since institutions have been quickly absorbing the dips systematically over the last month.
Institutional Demand on Ethereum Limited Supply
As history has shown, Ethereum’s success has followed closely to Bitcoin bull runs. Ahead of the highly anticipated CME Ether Futures Contracts in February, institutional investors have already created a feeding frenzy on varying crypto exchanges’ Ethereum limited supply.