On March 18, JPMorgan strategists pointed out that in dollar terms, the inflow of institutional funds into bitcoin in this quarter increased by 20% compared with the previous quarter, while the inflow of retail funds into bitcoin increased by 90%. So far, bitcoin prices have doubled in 2021, thanks to massive cash injections from institutional and retail investors.
As an asset with high volatility and low liquidity, the price trend of bitcoin may only depend on the current market conditions. Jeffrey Halley, senior Asia Pacific market strategist at OANDA, said on Thursday: "the price trend of bitcoin is largely determined by market speculation, but the large and rapid fluctuation also shows the lack of two-way liquidity in the market."
Bank of America believes that another factor that may push up the price of bitcoin is that the biggest holders are still long bitcoin. Bank of America points out that many so-called "whale" or institutional account holders are actually buying bitcoin rather than selling it. "Looking at the detailed blockchain records, we found that the largest address has not been sold since the outbreak began," they said All in all, the most important factor driving the price of bitcoin up in recent years, especially since 2020, is the inflow of capital, Bank of America analysts said.
With Biden's $1.9 trillion stimulus bill check issued this week and the Fed's dovish stance driving market optimism, the bitcoin market pool is expected to expand further. "There are more factors to support the continuation of the current bull market and it is believed that cryptocurrency will exceed $100000," said the founder of plan B. It is even expected to reach a high of $288000. "
(2021-3.19) |