Bitcoin has undergone a strong rally over recent weeks that has nearly brought it to $30,000. The leading cryptocurrency currently trades for $29,900, far above where it was just weeks ago.
Analysts think that the main Bitcoin bull phase is here. This comes in spite of some concerns shared months ago that the cryptocurrency market was due for an overextended consolidation as a result of the pandemic and its effects on global markets.
Bitcoin is up 2.5% in the past 24 hours and 20% in the past week.
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BTC Is In Its Main Bull Phase
According to crypto analyst Willy Woo, Bitcoin is now in its main bull phase:
“If you’re looking for an entry to HODL Bitcoin long term, don’t nickel and dime an entry. You’re not going to sweat a few thousand dollars of non-perfect entry when it’s $100k,$200k,$300k in a year… The main bull phase is here. Capital inflows has gone nuts.”
If you're looking for an entry to HODL Bitcoin long term, don't nickel and dime an entry. You're not going to sweat a few thousand dollars of non-perfect entry when it's $100k,$200k,$300k in a year.
The main bull phase is here. Capital inflows has gone nuts.
— Willy Woo (@woonomic) January 1, 2021
One reason why he thinks so is due to the vast amount of capital inflows seen in the Bitcoin space.
Technology analyst Kevin Rooke observed in December that the Grayscale Investments BTC Trust (GBTC) absorbed nearly 13,000 BTC in a single week. He wrote on the matter:
“Bad news for BTC bears. Grayscale’s Bitcoin Trust just added 12,319 BTC to $GBTC in a single day. That’s more than the 11,512 BTC they added during all of last week, when BTC broke its ATH.”
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Strong Retail Demand for Bitcoin
To corroborate the sentiment that bitcoin is in a bull market, data indicates that there is strong retail interest in the leading cryptocurrency.
Pantera Capital, a leading crypto-asset fund, found that there is a vast amount of retail demand for Bitcoin as evidenced by the PayPal crypto volumes.
On the topic, the firm wrote:
“PayPal’s crypto infrastructure provider is Paxos. Prior to PayPal’s integration of crypto, itBit, the Paxos-run exchange, was doing a fairly constant amount of trading volume — the white line in the chart below. When PayPal went live, volume started exploding. The increase in itBit volume implies that within two months of going live, PayPal is already buying more than 100% of the new supply of bitcoins.”
This strong demand dynamic should drive BTC higher over time as demand outstrips supply.
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Featured Image from Unsplash Chart from TradingView.com Price Tags: xbtusd, btcusd, btcusdt Bitcoin's "Main Bull Phase" Has Arrived: On-Chain Analyst