The bullish run of Bitcoin has accelerated as large institutions’ demand for Bitcoin has risen in recent months. However, the price increase is due to increased demand for Bitcoin. The world’s largest Cryptocurrency by market capitalization has broken through previous resistance and is now heading for the $70,000 level.
According to Bloomberg, the electric car manufacturer Tesla has prompted a significant number of institutions to convert some of their wealth to BTC, thus acting as a “inflation point.” Crypto enthusiasts are now terrified by recent developments in the crypto world. They are concerned that if BTC becomes the world’s benchmark crypto asset, they will be left out of potential benefits.
This fear, on the other hand, has boosted Bitcoin demand, as institutions from around the world, including the United States and China, race to include BTC in their portfolios. Just in the last week, to be exact. Meitu, a Chinese tech firm, purchased 175 bitcoins, while MicroStrategy, a US market analytics firm, purchased 253 bitcoins.
Grayscale, a crypto investment firm, paid $1 billion for Bitcoin and some other cryptocurrencies. The company’s AUM (assets under management) now stands at $46.10 billion as a result of this latest intervention. According to JP Morgan, a US investment bank, increased Bitcoin demand creates a favorable climate for the launch of a Bitcoin ETF in the US, which has the potential to lower entry barriers and thereby increase BTC demand.
Increased Bitcoin demand’s effect on BTC’s all-time high aspirations
BTC price has risen above a high resistance point in the last 24 hours as Bitcoin demand has grown over the last week. BTC has avoided an inverse head and shoulder pattern on its price chart from the previous month. According to the map, BTC could rise by around 15% to the Fibonacci retracement ground of 141.1 percent or 161.8 percent.
BTC rates are $67,450 and $70,330 on these two grounds, respectively. BTC must maintain a trade above $59,300 in order for these rates to materialize. Otherwise, the price of Bitcoin will plummet dramatically. The disadvantages, on the other hand, can be avoided if Bitcoin demand rises steadily.