Bitcoin reached its all-time high of $ 50,000 for the first time since its birth. Although not listed on most exchanges, Binance and Coinbase were the only exchange platforms to record their all-time high.
Are we at the head of the big rally for Bitcoin?
Analytically, this is a positive indicator for the rest of the market. The bull run was visibly moving when the buying pressure caused Bitcoin to surpass the $ 47,177 support. The break above $ 48,000 repeated a strong upward momentum.
The all-time high that Bitcoin has reached today had a special significance. Yesterday, both industry players and traders followed the market movement to announce that the price would break. This cultural practice has also been observed during Bitcoin’s transition to $ 20,000 last year. It was a long-awaited price mark that set the tone for the market today as well.
However, there are objective reasons to believe that this massive Bitcoin price increase is more than just a superficial performance. First, investment interest is on the rise with every new all-time high. The corporate FOMO has stepped in, and the whales’ buying spree could spark another bullish cycle.
The influence of institutional players
Tesla’s billions of dollars of Bitcoin acquisitions recently have affected the decisions of both miners and hodlers. On the other hand, the derivatives market recorded a new rise with open positions in the futures market. In Glassnode’s weekly view, hodlers have maximized their market power to “move and potentially sell on the go”. According to Glassnode’s ASOL indicator, “Elon Candle increased the average age of spent cryptocurrencies from 30 days to 58 days.”
The Elon candle also affected miners distributing cryptocurrencies during the rally. The final relief in selling pressure could be either; The necessary sales were made to meet the mining fee demands, or Tesla’s market action may have triggered the need to keep a close eye on treasures.
The derivatives market has also witnessed an increase in open positions. According to Glassnode, “The derivatives market reached a record of $ 16.48 billion, outpacing the previous peak of over $ 3.48 billion.”