Last week, Square
The announcement, albeit backward looking, drew the approval of the market as a potential signal that more corporations will follow Square’s lead, as Square apparently followed MicroStrategy’s
Additionally, it was recently revealed that Stone Ridge Asset Management, an investment manager with $10 billion in assets under management, has built up a $115 million position in bitcoin.
Stories like Square and Stone Ridge have become common place in 2020, which is why bitcoin’s fundamentals have continued to shine bullish. For example, per Glassnode, blockchain analytics firm, the amount of bitcoin held on exchanges has continued to plummet since March while the percent of total supply dormant for more than 1 year is at all-time highs, currently 63%.
Additionally, bitcoin continues to be helped by holders looking to take advantage of yield opportunities on the Ethereum network. Per Nansen, the amount of bitcoin locked up on Ethereum is ~$1.5 billion or 133,915 BTC (0.72% of total supply), with the largest beneficiaries being $WBTC and $renBTC.
Per Rekt Capital, cryptocurrency analyst, “last week’s candle close was an important first technical step that opened bitcoin up to testing higher resistance levels.”
“Bitcoin has managed to stay within or above the $10.300 – $10.800 demand area for four consecutive months: a historic feat, further solidifying the psychological price level of ~$10.000. Over the years, this same area (green box) had figured as a point of strong rejection, with the sole exception being the exponential rally of late 2017.”
“Going forward, bitcoin will soon attempt to breach a now 3-month diagonal resistance (black line) as price rises towards the higher $11,000s. Breaking this trend line would likely be a bullish price development”
With the November elections right around the corner, market volatility is unlikely to disappear. However, a growing number of large buyers like Square, strong fundamentals, and technical analysis charts continue to support a bullish thesis.
Disclosure: The author owns bitcoin, ethereum, solana, and compound.