Bitcoin Continues Its Unprecedented Rise: Explaining the Factors Behind its Consecutive All-Time Highs
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$100K, $103K, $106K… – How is Bitcoin breaching one ATH after the other?
The cryptocurrency market has witnessed an unprecedented surge in recent times, with Bitcoin (BTC) breaking multiple all-time highs consecutively. The digital asset has reached a new milestone, soaring to $106,000 as institutional demand outpaces supply, and OTC desk balances plummet.
For many observers, this meteoric rise raises questions regarding the driving forces behind it. Analysis reveals that an unrelenting surge in institutional demand combined with a tightening supply is fueling the unprecedented rally.
Institutional investment pouring into Bitcoin
An examination of on-chain data reveals a stark picture – OTC desk balances have witnessed a precipitous decline of 40,000 BTC since November 20, while a parallel and equally striking rise in apparent demand has been observed. This phenomenon highlights the insatiable appetite for the digital asset among institutional investors.
These sophisticated players typically engage with over-the-counter (OTC) desks to acquire substantial amounts of Bitcoin without perturbing spot market prices. The diminution of these reserves underscores their aggressive accumulation, thereby creating a supply shortage in the broader market.
Bitcoin’s price action bears testament to its buoyant sentiment. A clear uptrend has emerged, characterized by higher highs and higher lows, indicating an unmistakable display of market strength. Furthermore, Bitcoin remains securely above its 50-day and 200-day moving averages, signaling sustained support for the rally.
Furthermore, increased trading volumes have been observed during key upward movements, signifying robust participation from both institutional and retail investors. The Relative Strength Index (RSI) currently hovers around 70, implying a strong momentum. However, it also suggests the possibility of short-term consolidation as the market absorbs recent gains.
The fundamental drivers behind Bitcoin’s phenomenal rise are an unprecedented surge in institutional demand and an unrelenting supply squeeze. This confluence of events has generated a significant supply shortage, fueling its ascent to new all-time highs.
Source: ambcrypto.com
