Bitcoin Price Back at $8,700 As Institutional Investors Appetite for BTC Grows Exponentially
- Market gets excited as bitcoin makes way, a big move this week could be in order
- Altcoins surged as well, with Bitcoin Gold, Dash, Zcash, and Bitcoin Cash being the top performers
- Bakkt’s bitcoin futures delivery grows by over 1,600% while CME traders remain more bullish than any others
Today, Bitcoin yet again took a jump to climb to $8,700 level. This surge in price also saw the volume rising, from around $350 million, but it is still down at $522 million, as per Messari. Altcoins climbed in tandem, with Ethereum Classic (19.4%), Bitcoin Cash (13.09%), Zcoin (10.4%), EOS (7.56%), and Dash (7.45%) being the top performers, as per Coincodex.
As Bitcoin tries to run away with the bulls, it has key resistance present at $8.6 – $8.7k where trader Credible Crypto expects BTC to reject. He said,
“Could be something small, could be more significant. Once we get past that region we are off to the races.”
Meanwhile, popular trader Majin sees it testing $8,800 or $8,900. But trader BitBit is feeling extremely bullish as he says, “it's getting bullish af here,” as he notes 8,250 support level, 8,500 resistance level, Mex OV above 100k, CME bitcoin futures Friday close was at 8,505, Jan futures expiry this coming Friday, and 106 days to end this buy the halving narrative.
All this means “Big move is coming this week,” he said.
— Jonny Moe (@JonnyMoeTrades) January 26, 2020
Bakkt’s Futures Delivery Grows by 1,600%
Bitcoin price took a jump while the interest in the world's leading cryptocurrency is growing among the institutional investors.
Bakkt by Intercontinental Exchange which is also behind Nasdaq delivered 230 BTC worth more than $2 million in notional value on January 17.
This has been a significant increase, of 1,625% from 2019’s average of 13.3 Bakkt Bitcoin futures contract deliveries. Last year, only 15, 17, and 8 BTC contracts were held on Bakkt until expiry in October, November, and December respectively.
Although a small amount in comparison to daily trading volumes, in itself, is huge as the physical delivery of Bitcoin shows that institutional investors not only want to trade in Bitcoin but are also interested in holding BTC.
CME Traders Remains More Bullish than any others
Last week we reported how CME traders have been more bullish than other platforms and they continue to be bullish as CME’s June futures contracts are close to a 5% premium.
The premium rate for June contracts suggests investors are bullish on Bitcoin in the mid-term. However, both January and March premium rates fell this week meaning short-term expectations are bearish.
In separate news, Bakkt and Twitter CEO Jack Dorsey’s Square might soon be competing against each other.
Recently, at the World Economic Forum (EEF) in Davos, while sharing the plans for their consumer-facing app, Bakkt president Adam White said this new offering would involve a range of digital assets including virtual goods, equities, and other forms of digital assets, making a shift from its original plan for being solely focused on Bitcoin.
Interestingly, payments company Square obtained a patent earlier this week that will allow the users to pay and receive in any denomination which may extend to support securities, and derivatives in the future as well.
There hasn’t been a crypto’s “killer app” created which has White confident in his latest product that he says would closely resemble PayPal for digital assets, instead of just an exchange.