The main bull phase for Bitcoin has arrived according to an on-chain analyst with BTC undergoing a strong rally over the past few weeks that brought it to $30,000. The leading cryptocurrency is now trading at $30,600 which is a new all-time high for the asset as we can read more in our bitcoin news today.
Analysts think that the main bull phase for Bitcoin is here in spite of the concerns shared a few months ago that the crypto market was due for an overextended consolidation as a result of the pandemic and the strong effects it had on the global market. Bitcoin increased by 2.5% over the past 24 hours and 20% in the past week. According to Willy Woo, BTC is in its main bull phase:
“If you’re looking for an entry to HODL Bitcoin long term, don’t nickel and dime an entry. You’re not going to sweat a few thousand dollars of non-perfect entry when it’s $100k,$200k,$300k in a year… The main bull phase is here. Capital inflows has gone nuts.”
If you're looking for an entry to HODL Bitcoin long term, don't nickel and dime an entry. You're not going to sweat a few thousand dollars of non-perfect entry when it's $100k,$200k,$300k in a year.
The main bull phase is here. Capital inflows has gone nuts.
— Willy Woo (@woonomic) January 1, 2021
One of the reasons why he believes this is the case is because of the vast amount of capital inflows that are seen in the BTC space. Technology on-chain analyst Kevin Rooke observed that the Grayscale Investments BTC trust gathered 13,000 BTC in one week as he wrote:
“Bad news for BTC bears. Grayscale’s Bitcoin Trust just added 12,319 BTC to $GBTC in a single day. That’s more than the 11,512 BTC they added during all of last week, when BTC broke its ATH.”
To corroborate the sentiment that BTC is in a bull market with the data showing that there’s a strong retail interest in the leading crypto asset. Pantera Capital which is a leading crypto asset fund found that there’s a vast amount of retail demand for BTC as seen by the PayPal crypto volumes:
“PayPal’s crypto infrastructure provider is Paxos. Prior to PayPal’s integration of crypto, itBit, the Paxos-run exchange, was doing a fairly constant amount of trading volume — the white line in the chart below. When PayPal went live, volume started exploding. The increase in itBit volume implies that within two months of going live, PayPal is already buying more than 100% of the new supply of bitcoins.”
The strong demand dynamic shows that BTC is able to shoot higher over time as the demand outstrips the supply.
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