Bitcoin gets massive buy pressure, and in this article, we’ll explore the main reason for which this is happening. Check out the latest data below.
Bitcoin sees massive buy pressure
BItcoin (BTC) will be receiving a boost from a prominent stablecoin issuer. It’s important to note the fact that this will most likely support the crypto king’s price in the future, according to digital assets manager CoinShares.
In a new blog update, CoinShares weighs in on Tether’s recent decision to allocate up to 15% of its profits into Bitcoin. SUch a move would be as part of its new reserve management strategy.
“The announcement from Tether, one of the most prominent US dollar-denominated stablecoins, that has decided to begin purchasing Bitcoin from its profit, is anticipated to have a positive effect on Bitcoin’s price.”
CoinShares says that historically, large purchases just like the one that we just mentioned that might happen have positively impacted the price of Bitcoin, and should support BTC.
“Our fund flows data reveals that weekly price appreciation where weekly fund inflows ranged from $10–20 million was 2.3%. Although the standard deviation of those observations was 10%, it’s encouraging that 64% of the time, the price movements were positive. This suggests a measurable positive impact from Tether’s decision to progressively increase their Bitcoin holdings.”
Bitcoin price prediction
At the moment of writing this article, BTC is trading in the green and the king coin is priced at $27,316.
Accoridng to the latest reports, it seems that the crypto analytics firm Santiment says that on-chain data is now hinting at renewed bull runs for Bitcoin (BTC) and Ethereum (ETH).
The market intelligence firm said that both of the top two crypto assets by market cap are seeing more and more of their supplies being moved out of digital asset exchange platforms. They are reportedly moved into self-custody wallets.
According to the firm’s data, both BTC and ETH are seeing historically low supply on exchanges.