According to data from Coinbase and Tradingview, Bitcoin (BTC) officially reached a record high of $1,9892 on December 1, nearly three years later.

Although it closed on Thanksgiving last week, the price of Bitcoin continued to rise throughout the weekend. Then, BTC slightly broke the $19,000 mark on Monday and hit a new all-time high, although this is also true on some exchanges.

Three major trends drove the rebound of BTC, rising from less than $3,600 in March to over $19,892. These include increased institutional demand, reduced selling pressure and flexibility of BTC throughout 2020.

Data shows that institutional demand leads the rise
Most data points on the chain indicate that institutional demand for Bitcoin has increased rapidly.

In November, Grayscale’s net inflow hit a record high, and the open interest in the CME Bitcoin futures market increased by nearly $1 billion.

In particular, Grayscale shows that the number of institutions investing in cryptocurrencies in the third quarter of 2020 has exceeded ever.

The numbers that Grayscale sees are important to gauge the interest of institutions in Bitcoin, because Grayscale Bitcoin Trust is usually the first entry point for most organizations to participate in BTC.

In the United States, there are no exchange-traded funds (ETFs) for Bitcoin and other major cryptocurrencies. Therefore, Grayscale Bitcoin Trust is the investment tool closest to ETFs in the US market. Gray report text:

“In the third quarter, 20 more institutions invested than ever before. The average distribution increased from $2.2 million in the third quarter to $2.9 million in the third quarter, and from $2.9 million in the third quarter to the second quarter. $2.9 million in the quarter. In the third quarter of 20 years, the personal liabilities of productive investors almost doubled.
As Cointelegraph reported in August, MicroStrategy purchased USD 450 million worth of BTC and acquired Bitcoin as its main warehouse asset. This may be the spark that ignited the current wave of institutional demand for digital value storage.

Throughout the summer, along with Square, Paul Tudor Jones and later Stanley Druckmiller’s high-profile configuration of Bitcoin, it brought positive sentiment to the market.

In November, Druckermiller stated that Bitcoin may stay here because it is much better than 2020 gold. He said:

“It has been in existence for 13 years, and the stability it gains as a brand every day is higher.”
Low whale flow
According to the chain, after six months of halving production, sales pressure on whales also eased in November. In other words, the number of bitcoins sent by wealthy investors to exchanges has steadily declined this month.

CryptoQuant CEO Ki Young Ju described the whale exchange rate as an indicator of long-term bull market sentiment. He said:

“Dear BTC dollar shortcut, you can call me Moon Boy, but unfortunately, there will be no large-scale dumping like in March this year. The whale’s exchange rate (90-day average) is still very low. Long-term rise The trend is inevitable.”
The slight selling pressure of Bitcoin allowed the rally to continue for the entire month, and finally brought the dominant cryptocurrency to an all-time high.

Bitcoin’s resilience is an important factor
JP Morgan stated in a report on June 13 that Bitcoin’s recovery from the March crash indicates that it is continuing. The recognition of Bitcoin’s flexibility by the largest investment bank in the United States has greatly enhanced people’s confidence, especially for institutional investors.

Finally, Bitcoin’s impressive performance over the past decade and its strong momentum since it fell below $3,600 on major exchanges in March shows the resilience of BTC and its long-term potential as a store of digital value.

Source: CoinTelegraph

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