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Bitcoin, the most popular cryptocurrency in the world, is taking the headlines again amid buying pressures seen recently after it dropped as low as $ 16,400.
What we know: At the time of writing, the flagship cryptocurrency was trading at $ 18,520.10 with a 24-hour trading volume of $ 24.6 billion. The price of BTC has risen 3.9% in the past 24 hours. It has a circulating supply of 19 million coins and a maximum supply of 21 million coins.
What does it mean; It is important to note that long-time Bitcoin holders keep more and more BTC for longer periods, leading to some scarcity; hence, pushing prices as retail traders rush to own a stake in the most sought-after cryptocurrency during the COVID-19 era.
- Global investor activity in HODLing has increased since March, when the price of BTC briefly dropped below $ 4,000. Since then, investors have steadily accumulated BTC.
- Nairametrics believes increased buying pressures from major institutional brands is partly responsible for recent highs in undilutable cryptocurrencies
A few weeks ago, Square Inc. led by Twitter’s Jack Dorsey on October 8, revealed that it had purchased 4,709 bitcoins for an estimated $ 50 million.
Square added that it had invested in cryptocurrencies because it saw it as a tool for economic improvement through participation in the future of payment systems, which is in line with Square’s goals.
The investment represents approximately one percent of Square’s total assets at the end of the second quarter of 2020.
“We believe bitcoin has the potential to be a more ubiquitous currency in the future,” Square’s chief financial officer Amrita Ahuja said.
A few weeks ago, MicroStrategy, a publicly traded company based in America, adopted Bitcoin as a treasury reserve asset to protect itself from fiat inflation. This is a big deal, as BTC is being used as intended – a money / savings tool.
With so much demand, especially from institutional investors like Grayscale and Microstrategy, it may just be a matter of time for the world’s flagship cryptocurrency to jump the long-term bullish bandwagon.
