● BTC above its 10-day and 50-day moving averages.
● Interestingly, there are more addresses now with 1,000 or more bitcoin than ever before.
● The count of those on the “Bitcoin Rich List” has reached a high of 2,190.
The Bitcoin market is experiencing low volume on Monday, but BTC/USD is trading around $11,737, continuing to stay within a range of between $11,300 to $12,000. What has been impressive, though, is the rise of the “Bitcoin Rich List”, where addresses holding over 1,000 Bitcoin has reached a new all-time high of 2,190 addresses. This rich list now comprises nearly $92.2 billion worth of Bitcoin, which is nearly 8% of the total market cap.
Nevertheless, many stakeholders who are long-term bullish are expecting some retrenchment from bitcoin’s recent price gains. Those expecting short-term downside region include Robert Koine, head of institutional trading for Koine, and Daniel Koehler, the liquidity manager for OkCoin. On a macro level, Bitcoin seems more bullish than ever given the harsh reality of the current inflation rate in America. A former chief executive from Prudential Securities – George Ball – said in an interview, “I’ve never said this before, and I’ve always been a blockchain, cryptocurrency and bitcoin opponent. But if you look now, the government cannot stimulate markets forever, the liquidity flood will end.”
Moving onto Ethereum, the second-largest cryptocurrency, we see that the pair peeked back above the $400 level on Monday. As of 20:00 UTC, Ether sits just one notch above the major resistance at $401, at the time of writing. The biggest issue ETH/USD faces at this time is gas fees, as fees on the network hit an all-time high for Ethereum with the constant activity of DeFi trends continuing to play out across the network.
Closing out in other news, we circle back on the idea of the expanding rich list. Looking on the corporate side, we continue to see companies adding BTC/USD to their balance sheet, in place of cash, as company CEOs continue to look to hedge their “capital.” This hedging happens against the fear of inflation, as the US Dollar and other central bank currencies around the world continue to increase in supply, to stave off the ongoing COVID crash. As we saw with MicroStrategy last week adding $250M US of Bitcoin to their balance sheet, a Graphic Software Firm known as Snappa in Canada announced they are also moving a significant amount of cash reserves into Bitcoin.
To us, it seems the whole premise as to why Bitcoin was invented is playing out before our eyes. In another time of crisis, governments across the world are printing money to keep up, trading temporary gains for long-term stability. There are several significant events on the horizon, such as Jay Powell’s ‘historic’ Jackson Hole speech upcoming this week, but it seems unlikely this inflationary trend will come to an end anytime soon. That being said, it seems like a great time to be a cryptocurrency bull, and the prospects only grow brighter every day.
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