In recent days we have seen how Bitcoin has been climbing positions, already surpassing $38,700 and trying to break through the $40,000 barrier. Does this mean that the expected cryptocurrency bull run is being brought forward? Let's analyze in detail what is happening.
Major institutions are aggressively buying Bitcoin. A key fact is that MicroStrategy, a major US investment fund specialized in Bitcoin, has just purchased another $600 million in BTC in just 48 hours. This has driven prices upwards. But they are not the only ones. Another mysterious unknown wallet bought $450 million in the same period.
Clearly institutions are strongly positioning themselves in Bitcoin. And if experts are buying it is because they foresee that major price increases will come in the short and medium term. Otherwise they would not assume this high risk.
Another bullish indicator is that in recent days the amount of Bitcoin available on exchanges to buy has decreased drastically. There is less and less BTC in circulation and this can produce a "shock" of scarcity that further increases its price.
In total, $1.280 billion left the exchanges in just 48 hours. And people are taking their crypto to secure wallets or custodians, so they don't plan to sell short term.
As if that were not enough, the chairman of the US Federal Reserve, Jerome Powell, has shown quite uncertain this week about whether they have reached their inflation control targets. Everything seems to indicate that in January they will begin to ease their monetary policy, gradually lowering interest rates.
In summary, with major institutions aggressively buying Bitcoin, massive withdrawals from exchanges, possible approval of BTC ETFs in the US in January 2023, and more lax monetary policy... all the ingredients seem aligned for a strong bullish rally that marks the beginning from the expected bull run.
However, it is still too early to claim victory. It is likely that the major market players will first want to purge the unwary who have opened long positions, with a major dump that makes them trigger all their stops loss. So it is advisable to watch out for any signs of weakness so as not to get your fingers caught.
But the medium term trend looks very good. So, if you plan to HOLD long term, any price below $40k seems like a good accumulation area. Yes, without leverage or unmanageable risks.
Posted Using InLeo Alpha