The U.S. Office of the Comptroller of the Currency allows the use of stablecoins. Will the Bitcoin price stop at $35,000?

In just half a month, the price of Bitcoin broke through from more than 20,000 US dollars to 34,000, and market sentiment was unprecedentedly high.

Bitcoin's total market value ranks among the top ten in the world, ranking ninth, second only to Alibaba.

In the past 24 hours, the price of Bitcoin has experienced a correction.

The Bitcoin price correction caused a round of volatility in mainstream currencies. Among the TOP50 digital currencies, 38 digital currencies fell, with SUSHI experiencing the largest drop of 11.34%.

However, the overall speculative enthusiasm in the market has not decreased. Will $35,000 be the end of this round of Bitcoin market?

Won't.

1. Institutional entry & market supply issues

Looking back at this round of skyrocketing prices, a total of 87,954 bitcoins have been withdrawn from digital currency exchanges in the past 30 days. Among them, Coinbase withdrew a total of 84,558 bitcoins, OKEX 5,715, and Huobi 2,599.

On January 3, Coinbase's capital outflow hit a record high, with more than 3.5K bitcoins flowing out, and the flow of this part of bitcoin was speculated to be institutional buying.

Currently, there are already 9 funds holding more than 23 billion Bitcoins. Hoarding Bitcoin has become the main investment strategy of major fund institutions.

Rafael Schultze-Kraft, on-chain data analyst and Glassnode CTO, said:

As institutional investors increasingly enter the market, liquidity is disappearing from cryptocurrency exchanges.

A large amount of Bitcoin has been withdrawn from digital currency exchanges, and most of it has been transferred to the addresses of custodial wallets. The Bitcoin in the addresses of Bitcoin miners has also been growing. The reduction in the supply of Bitcoin in the market means that there will be greater supply and liquidity problems, which will inevitably drive up the price of Bitcoin. However, the reduction in market supply will reduce market liquidity, which will cause the balance of market supply and demand to tilt, and there may be a potential waterfall market risk in the future.

2. Good news continues

Although Ripple was accused by the SEC and there was news that the Tron Foundation was affected by the US regulatory actions, digital currency regulation still ushered in a relatively good news today. In the explanatory letter published by the US Office of the Comptroller of the Currency on January 5, it stated that federal banks are allowed to use stablecoins for payments and other activities. For Bitcoin, this undoubtedly strengthens its throne as "digital gold". This wave of good news is also called "a huge victory for the crypto industry and stablecoins."

FINANCIAL TIMES The Financial Times also published content about Bitcoin breaking through $30,000 on its front page on Monday US time.

In 2017, Jamie Dimon, chairman and CEO of JPMorgan Chase, said that “Bitcoin is worse than the tulip bubble.” Today, Nikolaos Panigirtzoglou, who is responsible for JPMorgan Chase’s global market strategy, said:

The long-term price target of Bitcoin will be above $146,000, and Bitcoin may take over the market share of gold in the future.

It is reported that on January 1, Bitcoin reached a record high against gold, exceeding its peak during the winter bull market in 2017.

It remains to be seen whether Bitcoin prices will push higher into the $50,000-100,000 consensus zone as predicted by JPMorgan strategists.