Bitcoin Market Changed 'Radically' & Volatility Decline Attr | Crypto Land
Bitcoin Market Changed 'Radically' & Volatility Decline Attracts Institutions.
We are in a "radically" different bitcoin (BTC) market today, an analyst stressed, while JPMorgan strategists find that decreasing volatility is here to help institutional adoption.
Per the latest Market Intel report by Chainalysis' Chief Economist Philip Gradwell, the data collected in the research suggested that the bitcoin price is resilient above at least USD 50,000, that there is significant observed demand at high price levels, but also that the market has changed radically in recent months.
"Cryptocurrency prices have been volatile but resilient over the last two weeks, with the bitcoin price ranging from a low of just over USD 50k to a high of just under USD 60k, but ending the fortnight at a similar price level to the start, of above USD 58k," he said.
Chainalysis observed the amount of bitcoin held by 'whales', those who held at least BTC 1,000, and how much they had paid for it, but they also analyzed all entities holding bitcoin, and concluded that,
"Analyzing the cost of acquisition since 2016 demonstrates how radically the market has changed in the last few months, to one where there is likely to be a lot of demand from existing buyers to support high price levels. As long as existing buyers do not change their hypothesis on bitcoin, it is likely that the price will be resilient above at least USD 50k."
While, by March 29, BTC 8.4m were last acquired for less than USD 10,000 each, BTC 0.1m were acquired for more than USD 57,626 - these holders had made a USD loss but were still holding. Furthermore, said Gradwell, BTC 5.6m were bought for more than USD 30,000 and continue to be held, as well as BTC 3.1m at more than USD 40,000, and BTC 1.6m at more than USD 50,000.
Additionally, with the rapid price increase since November, from USD 15,000 to the all-time high of above USD 61,000, came the significant acquisition of bitcoin across many groups, resulting in the bitcoin cost curve to shift up significantly for 8m of the BTC 18.7m supply - meaning that the cost basis for many BTC is now "radically higher" than just a few months ago, "demonstrating that a broad swath of market participants are willing to buy and hold at much higher prices than previously."
