Long-term prospects for Bitcoin look bullish
Although BTC gains have begun to slow down recently, long-term signals point to a more sustained recovery
Although Bitcoin and the associated cryptos are showing signs of slowing bullish momentum in the short term, other signals are pointing to a more sustained push in the long term. Even in the short term, news of MicroStrategy buying $177M worth of BTC, along with Coinbase planning to scoop up $500M of BTC is being seen positively by the market. And while a correction is entirely plausible from the current levels, the long-term path looks constructive.
At the time of writing, Bitcoin is trading close to $47.4k after retreating from the psychological barrier of $50k — last seen on May 12. Ethereum, similarly, almost touched $3,400 (last touch on May 16) and is now hovering around $3,120. Cardano (ADA), however, has been the success story of August — overtaking its previous high ($2.46) of May 16 to chart a new ATH of $2.96. The Alt. coin is now trading around $2.59.
According to the recent Chainalysis Market Intel, prospects look good for Bitcoin to sustain a long-term bullish trend. Despite a waning momentum in the short-term gains, the report highlight three factors that point to a healthy outlook for the premier digital coin, in the long run. Let’s get started then.
Re-Entry of Large Investors
No surprise that large investors not only play a major role in moving the legacy financial markets but also play a key role in moving the pioneer crypto. As highlighted in my previous blog, 83% of the bitcoin into exchanges is from other exchanges and large traders. Although the overall market liquidity of BTC remains the same when such flows take place. However, when these large investors position themselves to accumulate the digital asset, the supply decreases significantly — causing a decline in liquidity & an increase in price.
This relationship didn’t hold as strongly as expected during March and April of this year, as…