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Popular On-chain analyst hints at possible Bitcoin accumulation by corporates

Photo of: Janeth Diamond
by Janeth Diamond

Bitcoin is currently viewed as a strong reserve of value asset which is why it is becoming the institutional investor’s favorite. High net-worth investors are now relying on Bitcoin as an efficient hedge against inflation. Recently Square’s decision to buy Bitcoin to hold Bitcoin as a reserve asset met with much excitement and acceptance. A few months ago MicroStrategy made a similar announcement but it was a larger deal compared to Square. 

The trend of institutional investors stepping in to get their hold on BTC is a good sign for it as it is likely to see bright days. The Square decision to invest might just be a drop in the bucket suggesting that many more such things are expected. On-chain data is suggesting that several large and discrete investors might be vying for their share of Bitcoin accumulation. 

Bitcoin is yet again showing how resilient it is. After experiencing a blow, Bitcoin is showing some notable signs of strength as its price is pushing past the key resistance levels in the lower ring of the $11,00 price region. It is important to know that the investor sentiment is hopeful that Bitcoin will continue to ride if corporations keep on investing in it. It is important to understand that bulls have to maintain their momentum if the selling pressure is intense and could actually pull back all the positive spots.

What this does not need is the viewpoint that it is anything near ordinary. BTC’s strong momentum is further strengthening the hopes that the world’s oldest and the most popular cryptocurrency will be adopted as a reserve asset by corporations. Also as per a popular on-chain analyst, Microstrategy and Square are only what is visible and is the tip of the iceberg. What does not appear outright is how there are Corporations waiting to get their hold of BTC. 

A lot of pull-down factors were hovering near Bitcoin that is responsible for its bearish tendencies. One of the biggest ones being CFTC news of it pursuing BitMEX and its founders resulting in several traders withdrawing their funds from there. But with the news pouring in from Square about its investment decision, the bullish perception seems to have revived again. 

In a recent tweet of Willy Woo – the famous On-chain analyst, he clearly said that Square and Microstrategy is just the beginning. What is to follow will be more exciting. If there are more companies on the run to accumulate their share of Bitcoin, BTC is up for a major bull run. Check out the tweet below:

Source: Twitter

Willy Woo also pointed out the huge reduction in the availability of spot BTC on exchanges. He brought to notice that the purchases by Square and MicroStrategy represent only a small portion of the total supply reduction. Now only another official announcement by a corporation is in the wait, and once that happens, it can act as a major catalyst to its growth.