Friday, December 3

Markets up to date: retail holders drive bitcoin purchases


Key facts:
  • After an initial 15% drop at the beginning of the week, the price rebounded in recent days.

  • Historically, retail holders have been very influential in bull cycles.

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Bitcoin has fallen 10% since the start of the week, when it was trading at $ 65,500, to the time of this writing. According to a study by the analytical firm Glassnode, commented by CriptoNoticias, long-term bitcoin holders (LTH) have already entered a moderate profit-taking phase. This implies that these holders have started to sell some of their BTC, which causes a downward price pressure.

The small holders, with less than 1 BTC, are in an intensive phase of purchases at the moment, which guarantees that the current correction is not the beginning of a bear market, but of a consolidation, says Willy Woo in his most recent newsletter. markets.

Thermal map of trading of holders with less than 1 BTC. Source: charts.wobull.com

In the graph, the blue circles represent purchases by retail holders. There has been an intensification of purchases by this segment of holders in recent days. On the other hand, long-term holders have also maintained bitcoin purchases, although part of that segment of holders has participated in BTC sales.

Scaramucci recommends buying bitcoin

Investors should buy bitcoin now, even if the price is above $ 60,000, SkyBrigde Capital founder and former White House communications director Anthony Scaramucci said on Friday. In an interview with CNBC commented on by this medium, the investor said that he is making an effort to explain to his clients “why they need to own bitcoin.” For Scaramucci the price of bitcoin is likely to reach $ 500,000 per unit by mid-2025. There would not be enough BTC, if each of the 49 million millionaires that exist in the world decided to buy a unit, he noted.

Bitcoin on track to $ 400,000, says financial analyst

For the financial markets analyst, Carlos Maslatón, the bullish momentum of bitcoin has not ended and could conclude the current cycle at USD 400,000.

Maslatón, who presented his analysis in a talk at the LaBitConf conference, reviewed by CriptoNoticias, uses the Elliot wave model for his predictions.

According to him, the current cycle of bitcoin will be closed in two to three years, with several spikes and corrections. that will culminate in a price of USD 399,759, says the specialist.

In the short term, Maslatón anticipates that, starting from the last historical maximum of USD 69,000, two new ceilings of USD 78,000 and USD 117,000 will occur in a few months.

Featured chart of the week

The SOPR metric, or profit rate on exits spent, is a measure of the profitability of the BTCs sold. This chart displays the SOPR indicator for short-term holders or STH. The rate of profit is calculated by dividing the prevailing price by the realized or effective price; the latter corresponds to the price of BTC the last time it changed hands.

Short-term holders entered a loss in the last few days. Source: Glassnode.

As can be seen in the graph, when the SOPR of short-term holders is less than 1, the sale was made at a loss. Each time the curve remains below 1 (areas marked in pink) the price registers a minimum, and after each incursion below 1, there is a rise in price. At this time, the SOPR for STHs is below 1, so a next price rally could be expected.

Max Keizer believes that Bitcoin in El Salvador is the declaration of independence. Composition by CriptoNoticias. Sources: igor-faun / stock.adobe.com .

Governments could start hoarding bitcoin

The bitcoiner LaBitConf 2021 conference was held from November 15 to 20 in El Salvador, with the intervention of some 150 international referents of that ecosystem. In a talk commented by CryptoNews, renowned Bitcoin evangelist Max Keizer said that it was inevitable that governments would enter a race to mine and accumulate bitcoin. Keizer affirmed that countries will follow the example of El Salvador, which declared bitcoin as legal tender, since fiat currencies are in frank deterioration. Inflation, in his opinion, will wreak havoc on people’s lives and on the economies of countries.

Square will have a decentralized bitcoin exchange

While the price of the crypto asset fluctuates, as usual, the industry around this currency continues to develop. Square, the payment processing company led by Jack Dorsey, published the White Paper of tbDEX, a decentralized exchange for exchanging fiat currencies and bitcoin, as reported this Friday by CryptoNews. tbDEX will allow users to participate in the sale of bitcoin without the need for a third party. The protocol adjusts the transaction costs according to the anonymity desired by the participants. The higher the anonymity, the higher the transaction costs.



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