Bitcoin’s Highest Weekly Close Since Jan 2018 Coincides with Falling Inflow to Exchanges
Yet another weekend that saw Bitcoin jumping the $12,000 level.
After breaking the key level of $10,000, now the largest cryptocurrency is working on another important level.
Over the weekend, BTC went down to $11,500 only to start gaining momentum towards the end of the day to start yet another bullish week.
And #Bitcoin has breached 12k. Great way to start the week!
— Tyler Winklevoss (@tylerwinklevoss) August 10, 2020
However, bitcoin is having a repeat performance as it trades just above $11,700 with a ‘real’ trading volume of over $2 billion while more than $4.5 billion worth of Tether (USDT) are exchanging hands at the same time.
Bitcoin futures on CME that hit $12k already last week and again today are now trading 1% over the spot price at $12,860. Trader Josh Rager said,
“Highest price weekly close for Bitcoin since January 2018!”
“A higher-high on the weekly trend – nice close by Bitcoin even after the $12,100 to $10,500 pullback. I will remain bullish with the trend even though pullbacks are expected,” he added.
When bitcoin is able to maintain the $12k level, the next target would be 2019 high $13,900 hit in June. But from here, the digital asset might not fly to a new all-time high to $20,000 yet. Trader Ledger Status said,
“Bitcoin history has a huge gap between $11.5k – $14k. Nothing but wicks in 2019 and huge bars straight thru in 2017 run. I expect we fill this region out some.”
Interestingly, the total amount of bitcoin transferred to spot exchanges' wallets started falling under $10k per day, towards the end of last week, compared to around $20k before that, as per CryptoQuant.
— Ki Young Ju (@ki_young_ju) August 9, 2020
As we reported, the market is enjoying a healthy and bullish network activity, besides price the network fundamentals are just as strong.
After weeks of no bitcoin buying, Grayscale has bought another 5,973 BTC sometime in the past three days based on its outstanding shares currently at 419,091,700. Although they do not completely represent the fresh BTC purchase, they do indicate some demand.
Institutions are also participating in this bitcoin mania that has started in the past few weeks only. Thanks to central bank easing, investors are looking for an “alternative” currency, being forced to look for other options for their investments. The zero interest rate policy (ZIRP) already spells no reward for saving money for the long term.
Will BITCOIN be the fastest horse? SAVERS biggest losers as Fed goes neg-int-rates. Middle Class piles into gold & silver driving prices up. Only rich able to afford Bitcoin once rich realize Bitcoin grows more valuable as Fed prints trillions. Is Bitcoin a bargain today?
— therealkiyosaki (@theRealKiyosaki) August 10, 2020
Meanwhile, another trillion-dollar stimulus package is not far off, which is “really incredibly important,” said Chicago Fed President Charles Evans on CBS’s Face the Nation program.
Additionally, Neel Kashkari, Minneapolis Fed president, argued in a recent New York Times op-ed that the March lockdown wasn’t strict enough, and it has put the US behind other countries on the road to recovery.
He warned of a situation that “could make what we have experienced so far seem like just a warm-up to a greater catastrophe.”
Before that, in an interview, Kashkari also argued for another “comprehensive and strict” lockdown to get the COVID-19 case down to prevent deaths before a vaccine is out. In the US, the COVID-19 cases surpassed 5 million this weekend.
This will result in a “much slower” economic recovery with “far more business failures and high unemployment for the next year or two,” he said.