Over the weekend the crypto markets incurred a massive influx of buying pressure that extended the upwards rally they have incurred over the past several weeks, with Bitcoin setting fresh year-to-date highs at $7,800, up significantly from its 2019 lows of $3,400 that were set in February.
Although it is always somewhat unclear as to what, or who, drives these rallies, one prominent economist and analyst believes that a small handful of large buyers who are actively engaging in strategic buying have driven this surge.
Bitcoin’s Surge to Year-To-Date Highs Not Driven by Retail Investors
At the time of writing, Bitcoin is trading up over 11% at its current price of $7,750, up from daily lows of $6,800 which were hit yesterday.
Bitcoin’s journey to its recently established year-to-date highs first began in early-April when Bitcoin swiftly surged from the lower-$4,000 region into the $5,000 region, at which point it traded sideways before forming a parabolic pattern that has led it up towards its current price levels.
This massive surge has led many analysts to conclude that the bear market has officially ended, which likely means that further gains are imminent and that the entire crypto markets are currently in the early-stages of the next bull trend.
Alex Krüger, a popular economist who focuses primarily on cryptocurrencies, spoke about who could be driving this parabolic ascent in a recent tweet, boldly stating that it is not being driven by retail investors.
“What drove $BTC up this week? A handful of large players, that started buying in waves. Systematic buying. Clues to reach that conclusion can be found in volume, price action, funding, and futures basis and term structure. May expand on this later. Not retail driven,” he explained.
Coordinated Buying and Institutional News May Be Driving BTC’s Price Upwards
Krüger further elaborated on the aforementioned tweet, speculating about what factors may be contributing the upwards surge, listing an influx of bourgeoning institutional venues and coordinated buying as two possible factors.
“What motivated these buyers? Possibilities: – Front-running Fidelity/Bakkt/Ameritrade/Etrade flows – Front-running news – Coordinated buying – Something else (as always) – Combination of all of the above,” he said.
As reported by NewsBTC, news broke earlier today regarding the imminent launch of the highly anticipated ICE-backed crypto platform, called Bakkt, which is expected by many to lead to an influx of fresh capital into Bitcoin and the crypto markets, which may help fan the flames that are fueling the ongoing rally.
As the week kicks into gear and more news breaks regarding the imminent launch of institutional platforms, including those being offered by Bakkt and Fidelity, it is likely that the long-term significance of this rally will become clearer.
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The post Analyst: Ongoing Bitcoin Rally Driven by a Handful of Strategic Buyers; Where Will They Send BTC Next? appeared first on NewsBTC.
Post written by our friend Cole Petersen
and Syndicated from NewsBTC
Syndicated from NewsBTC.com