Corporate crypto trading platform CrossTower suggested in a report shared with Cointelegraph that major investors will not allow Bitcoin (BTC) to fall below $ 50,000.
According to the report, the number of addresses with more than 1,000 BTC reached record levels in January. This shows that the whales continue to buy BTC at the bottom even though Bitcoin’s price is relatively high.
Positive business news, such as Mastercard’s decision to support some cryptocurrencies and BNY Mellon’s launch of custody services, indicate that the overall situation in digital asset markets is on the rise. CrossTower explained that the growth in bitcoin reserves of companies like Tesla also strengthened the upward expectation.
CrossTower Research Analyst Martin Gaspar told Cointelegraph, “We believe the record for addresses with over 1,000 BTC in recent weeks is evidence of institutional interest.”
Gaspar continued as follows:
“Many institutional investors are entering the industry with a buy-and-hold strategy, realizing that Bitcoin is a digital gold. On-chain data shows that these investors see the price weakness in January as a buying opportunity, which supports our upward expectation.”
CrossTower added that there was also a sharp decrease in the amount of Bitcoin held in the exchanges, and this trend reinforces the upward momentum in the markets. Analyzing CryptoQuant’s data, the company stated that the volume of stablecoin in crypto exchanges also increased by 159 percent in February compared to December 2020, reaching $ 7.4 billion.
Bitcoin, which has lost 12 percent of value in the last 24 hours, is being traded at $ 47,700 as of the time of translation publication.