Bitcoin bulls eye $50K as data show BTC’s liquid supply in steady decline

The price of Bitcoin (BTC) reached a new record high of $48,985 on February 12, before bouncing back to the $46,000 level.

A quick look at the 4-hour chart shows the Cryptocurrency trading at the top of what appears to be a brief consolidation phase, but the BTC is maintaining its bullish momentum thanks to a pattern of higher highs and lows.

If BTC manages to maintain its current pace and structure, we could see the $50,000 mark approaching before the weekend.

http://server.digimetriq.com/wp-content/uploads/2021/02/Bitcoin-bulls-eye-50K-as-data-show-BTCs-liquid-supply.png BTC/USDT 4-hour chart. Source: TradingView

A report by analysts at Decentrader shows that as the supply of liquidity in the bitcoin market decreases, so does the demand for top-tier cryptocurrency, as the number of BTCs that have not been in the chain for a long period of time also increases.

http://server.digimetriq.com/wp-content/uploads/2021/02/1613221383_119_Bitcoin-bulls-eye-50K-as-data-show-BTCs-liquid-supply.png Bitcoin Liquid Feed. Source: Glassnode

As you can see from the chart above, BTC currently has a liquid stock of about four million units, and this number has been steadily declining since June 2020, as whales and institutional investors increase their exposure to this emerging asset class.

Another evidence of the growth of big budget players is the increase in portfolios of more than 1,000 BTCs.

http://server.digimetriq.com/wp-content/uploads/2021/02/1613221383_719_Bitcoin-bulls-eye-50K-as-data-show-BTCs-liquid-supply.png Portfolios with at least 1,000 BTCs above the BTC price. Source: Decentrider

While the number of large portfolios is increasing, the number of small portfolios is staying the same or decreasing, suggesting that “the big players are taking over the coins of the small players.”

PayPal dives into cryptoconferencing

Other positive news for the currency cryptology industry came when PayPal announced that it plans to extend its cryptology services to residents of the United Kingdom.

This is the first time users outside the United States will be able to purchase encryption through the platform, which is expected to be available on PayPal and Venmo apps by the end of the second quarter of 2021.

To keep up with vendors like PayPal and Cash App, Apple Pay has announced a new partnership with BitPay, allowing Apple Wallet users to use their BitPay card to make purchases.

It also appeared that Grayscale Investments may soon be taking decentralized finance to the next level, as the registration of a new company in Delaware shows that the asset manager plans to offer Yearn Finance in the future.

Refrigerated trading sets the tone in traditional markets

Traditional markets came under pressure early Friday following the announcement on February 11 that federal regulators had opened an investigation into Robinhood and Reddit for signs of market manipulation in connection with the recent wild moves of titles such as GameStop and AMC.

After overcoming the early decline, all three major indices managed to recover and end the day in positive territory – the S&P 500 and NASDAQ closed the session at record highs, up 0.47% and 0.50% respectively. The Dow also posted a gain of 0.09%.

The broader cryptocurrency market continued its upward trend, with several projects posting double-digit gains and new all-time highs.

http://server.digimetriq.com/wp-content/uploads/2021/02/1613221383_46_Bitcoin-bulls-eye-50K-as-data-show-BTCs-liquid-supply.png Daily indicators for the cryptocurrency market. Source: room360

The ether (ETH) ventured into uncharted territory on Friday, reaching a new record of $1,863, while the Polka Dot (DOT) was the top ten coin performer, with a 21 percent overnight rate, to reach a new record of 29.52.

Other notable achievements include Pure-Play Algorithm (ALGO), which grew 38% to reach $1.84 by 2021, and tezos (XTZ), which grew 23% to reach a new record of $5.41.

The total market capitalization of cryptocurrents is currently $1.48 trillion and Bitcoin dominates with 60.4%.

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