This recent move up in BTC has staying power because both Institutions and Retail are involved...
Bitcoin has all the right ingredients for a a sustained rally
Moving past all the halving patterns, the dollar weakness, and everything else that may make bitcoin likely ready to start a strong bull market rally...
It has the right participants.
During the run up in late 2017 the predominant drivers of that rally were retail investors.
Very few institutions were involved outside of a handful of crypto hedge funds.
This time around, the driving force behind this rally has a slightly different makeup...
This rally has retail and institutions.
How do I know?
First, the futures and derivatives products continue to show record high volumes and record high open interest.
Check it out:
(Source: https://www.coindesk.com/bitcoin-futures-interest-soars-bond-yields-record-lows)
As you can see the open interest on the CME Bitcoin Futures product has never been higher than it is right now.
That doesn't tell us anything by itself, but traditionally, institutional investors tend to use bitcoin futures and derivative products more than retail investors.
A booming and robust derivative market is likely representative of an increasing institutional investor base.
Not to mention the major green light banks got several days back:
Secondly, retail is liking making it's way back in as well...
No, we aren't seeing hundreds of thousands of new accounts being created at Coinbase every week like we were back in 2017, but we are seeing something else that is very telling of retail interest...
Google searches for "Bitcoin" are up significantly over the last several weeks:
(Source: https://twitter.com/nomoonnomilk/status/1290841967329337346)
In fact they are getting close to the same level we saw around the Halving back in May.
Given that level of interest as well as the likely involvement of institutional investors mentioned above, I think this most recent move has the right ingredients to be a prolonged one.
It has more than just retail that are often quick on the trigger, and it has more than just institutions which hate bidding up assets.
It has a nice mixture of both, and that may be just what the doctor ordered for a sustained and prolonged rally.
Stay informed my friends.
-Doc
Posted Using LeoFinance
Fomo is defo in the air now, you can smell it. Everyone is looking at 20k now as inevitable.
Yep it definitely is. You think it happens before the end of this year?
yeah, Its game on for sure now. Crypto is an asset class as important for the world as FX, commodities, and shares now, its crazy to see how its come into the mainstream. True adoption is not that far away IMO. 5 years max. There is one major development waiting to play out though in my eyes , which is the implication of a big tech or governments own crypto and the complete tracking surveillance and auditing of people holding/trading/spending Crypto currency. These days will not last and I think many will hedge into XMR when it really comes to a head.
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