Bitcoin bulls target $ 50,000 as data shows liquid BTC supply is constantly declining


February 12, the price of Bitcoin (BTC) hit a new all-time high of $ 48,985 before falling back to the $ 46,000 level.

A quick look at the 4-hour chart shows trading the highest ranked cryptocurrency in what appears to be a brief consolidation phase, but BTC still maintains its bullish momentum through a pattern of higher highs and lows.

If BTC can maintain its current pace and structure, a move to the $ 50,000 level is likely to occur before the weekend is over.

BTC / USDT 4-hour chart. Source: TradingView

A report published by Decentrader analysts shows that While the liquid supply of Bitcoin has been decreasing, the demand for the main cryptocurrency has been increasing, as the number of BTC that have not moved on-chain for a long period of time also increased.

Liquid supply of Bitcoin. Source: Glassnode

As you can see from the graphic above, BTC currently has a liquid supply of approximately four million coins and the figure has been steadily declining since June 2020 as whales and institutional investors increase their exposure to this nascent asset class.

Another proof of the growth of the big players can be found looking at the rise of wallets holding more than 1,000 BTC.

Wallets that hold at least 1,000 BTC versus the price of BTC. Source: Decentrader

As the number of large wallets grows, the number of smaller wallets has been flat or declining, indicating that “bigger players are collecting bitcoin from smaller players.”

PayPal delves into cryptocurrencies

Additional bullish news for the cryptocurrency sector came when PayPal announced that it plans to extend its cryptocurrency services to residents of the UK.

This is the first time that users from outside the United States will be able to buy crypto through the platform, which should be available in the PayPal and Venmo apps by the end of the second quarter of this year.

In an effort to keep up with PayPal and Cash App, Apple Pay has introduced a new partnership with BitPay that will allow Apple Wallet users to use their BitPay card to make purchases.

It has also come to light that Grayscale Investments could soon bring a new level of exposure to decentralized finance, as a newly filed corporate filing in the state of Delaware shows that the asset manager is considering Yearn.Finance as a possible future offering.

Hectic trading sets the tone in traditional markets

Traditional markets came under early pressure on Friday following the February 11 announcement that Federal regulators have launched investigations into Robinhood and Reddit for indications of market manipulation related to the recent wild moves seen in stocks like GameStop and AMC.

After weathering the initial recession, the top three indexes managed to climb higher and end the day positive with the S&P 500 and the NASDAQ closing the session at record levels, with an increase of 0.47% and 0.50% respectively. The Dow also managed to make a positive gain of 0.09%.

The broader crypto market continued its bullish rally as multiple projects posted double-digit gains and new all-time highs.

Daily performance of the cryptocurrency market. Source: Coin360

Ether (ETH) ventured deeper into uncharted territory on Friday by setting a new all-time high at $ 1,863, while Polkadot (DOT) was the best performing top 10 coin, seeing a 21% rise during the early morning to a new high at $ 29.52.

Other prominent players include the pure proof-of-stake protocol Algorand (ALGO), which rose 38% to a 2021 high at $ 1.84, and Tezos (XTZ), which saw its price rise 23% to a new high of $ 5.41.

The total cryptocurrency market capitalization is currently $ 1.48 trillion and Bitcoin’s dominance rate is 60.4%.

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