Bitcoin is headed towards a new major milestone, $110,000. The cryptocurrency is gaining traction and numerous experts believe it is going to burst through this barrier soon. Although the price has had some ups and downs lately, in general things look good for Bitcoin.
It is a combination of the growing confidence of investors and an escalating market trend. First, retail investors, people who buy Bitcoin in small quantities, are contributing heavily to Bitcoin’s rise. While “Shrimps” and “Crabs” are the investors’ names, they’ve been adding more Bitcoin to their portfolios as they believe Bitcoin to be a long term valuable asset. They’ve in fact bought over 25,600 Bitcoin worth about $2.71 billion in fact. Although prices may fluctuate in the short term. This continued accumulation from smaller investors helps in keeping the price high and shows a faith in Bitcoin’s future.
Furthermore, Bitcoin is an attractive investment, due to its strong fundamentals. For example, less Bitcoins are being sold (CDD). Long term holds in this makes sense, long term holders are likely to be very confident in the coins future and uneasy at letting it fall too far behind so that may keep it stable while pushing it towards the $110,000 mark. If Bitcoin can hold above $105,000, it has the potential to rise and break this important milestone.
But it’s not just the retail investors loading up on stocks. Bitcoin’s institutional investors and the increased interest in Bitcoin exchange traded funds (ETFs) also tell of a strong market momentum. Bitcoin’s price potential is reflected in the billions of inflows into the U.S. Bitcoin ETFs. Demand to buy bitcoin rises as institutional investors can now purchase bitcoin in these ETFs without actually owning it.
Of course, there are challenges. Strong resistance to Bitcoin is on a par with $110,000 and hence its inability to break it may result in a fall back to around $100,000. However, the current market signals from smaller investors accumulation and institutional support would appear to indicate that Bitcoin may soon break through this resistance and continue its march upward.
Right now, no one is holding their breath more than Bitcoin as it chases this exhilarating $110,000 milestone. Despite what retail and institutional investors are saying regarding Bitcoin’s future and the overall market sentiment, the cryptocurrency appears ready for more price gain in the months to come.
Also read: What Does Trump’s Executive Order Means for Solana’s Growth?
