Breaking through $17,000! Bitcoin continues to rise

In the past 24 hours, Bitcoin has risen by nearly 5%, and in the past week, Bitcoin has risen by nearly 12%. Although there was a short period of sideways trading around $16,000, after entering this week, Bitcoin is full of fuel to continue to rise.

Philip Swift, Bitcoin analyst and founder of Lookintobitcoin.com, believes that based on fundamentals and technical indicators, Bitcoin is expected to reach $22,000 in this round of upward trend.

He pointed out that the proportion of addresses holding Bitcoin for more than one year is still high, a large amount of Bitcoin is flowing out of crypto exchanges, the bulls and bears in the derivatives market are still evenly matched, and institutional funds are still buying Bitcoin, which will push the price of Bitcoin to a new historical high.

Currently, the proportion of addresses holding Bitcoin for more than 1 year has risen from 59% in March to 62%. This indicator is at an all-time high, indicating that Bitcoin supporters are continuing to accumulate Bitcoin, which reflects the willingness to buy and hold Bitcoin for the long term in the market. The current trend may indicate that investors expect Bitcoin to rebound more broadly over a longer period of time.

Judging from the current financing rate in the crypto derivatives market, the long and short sides are maintaining a benign balance, and the market is not overheated. Judging from the data on the inflow and outflow of Bitcoin in cryptocurrency exchanges, a large amount of Bitcoin is flowing out of crypto exchanges. In the past month, about 145,000 Bitcoin trading centers have flowed out, which means that crypto investors are holding Bitcoin for a long time in the bull market, rather than selling it.

Additionally, institutional investors have been buying Bitcoin since the first half of this year and according to Grayscale, the company currently holds more than 500,000 Bitcoins, worth nearly $10 billion at current Bitcoin prices.

Since October, the price of Bitcoin has risen by more than 50%. Although this scene reminds people of the crypto bubble in 2017, the current crypto market and ecology are different from that time.

Coupled with the fiat currency inflation caused by the economic stimulus and quantitative easing policies implemented by various countries in response to the COVID-19 pandemic, Bitcoin is being used by more investors as a store of value similar to "digital gold", and the price of Bitcoin still has a lot of room to rise.