The Quiet bull market of BTC(bitcoin)

Sajjad Hussain
Nov 11 · 3 min read
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The Bitcoin market continued to fluctuate yesterday. It rose and fell the night before yesterday. Bitcoin rose again short-term against the US dollar, breaking through the US$15,400 mark, with a daily increase of 2.68%.

Judging from the price trend of Bitcoin, the price of Bitcoin was close to $16,000 in recent days. Although it fell slightly, it also robbed gold of the limelight. The market called it a “quiet bull market.” Some industry insiders claim that Bitcoin has gradually become a direct share of gold cannibals. From the glassnode data, the number of addresses holding more than 100 BTC is hitting a new high this year. And JPMorgan Chase said, “This comparison (gold and Bitcoin) supports the idea that some investors who previously invested in gold ETFs (such as family offices) may be looking for Bitcoin as an alternative to gold.”

“Although people generally believe that Bitcoin has high-risk characteristics, the high-risk is often high-yield-in the past ten years, the price of Bitcoin has risen thousands of times. In the global macroeconomic situation is uncertain, future market interest rates are long-term negative interest rates,” In the case of “money is not valuable”, people will prefer alternative assets with high risks and high returns, so emerging assets such as Bitcoin have become one of the main choices for investors.

Recently, one of the important reasons for the rise in the price of Bitcoin is the entry of incremental funds, especially the continuous purchase of giants such as Grayscale, MicroStrategy, and Square, to inject more liquidity into the entire crypto market.

Since October, Grayscale has increased its holdings of Bitcoin for 16 consecutive working days, accumulatively increasing its holdings of 41,896 BTC, and Grayscale’s total assets have reached 8.6 billion U.S. dollars, which is worthy of being a “Bitcoin Whale”.

In August of this year, MicroStrategy, a Nasdaq-listed business intelligence company, has also bought a total of 21,454 bitcoins with a total value of approximately $250 million.

Recently, the once-hot DeFi mining has gradually cooled down, and many funds have begun to withdraw from DeFi and flow into other cryptocurrency markets such as Bitcoin. According to CoinGecko, 55 currencies in the DeFi field have fallen in the past week. Due to the rise of Bitcoin, the total locked-up volume of DeFi in US dollars has not shown a significant decline, while the locked-up volume in BTC has fallen by 2.36%. The amount of locked positions in ETH fell by 7.23%.

As an emerging currency, Bitcoin’s global popularity and recognition are also increasing year by year. As MicroStrategy founder and CEO Michael Saylor said, “Bitcoin’s global recognition, brand awareness, ecosystem vitality, network advantages, structural resilience, technical utility and community spirit are convincing evidence that proves that Bitcoin is The advantages of long-term value storage asset classes”, therefore, Bitcoin is also the first choice for investment of funds in the circle. A lot of DeFi funds in the market switched to Bitcoin. In the end, the price of Bitcoin has continued to rise in the past month, while many DeFi currencies have continued to fall. This is also an important factor affecting the price of Bitcoin.

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