On February 12th, the price of Bitcoin (BTC) reached an all-time high of $ 48,985 before easing back to the $ 46,000 level.
A quick look at the 4-hour chart shows that the higher-ranked cryptocurrencies are trading in what appears to be a brief phase of consolidation but BTC is still maintaining its bullish momentum through a pattern of higher highs and higher lows.
If BTC manages to maintain its current pace and structure, the move to the $ 50,000 level will likely happen before the weekend ends.
A report from analysts at Decentrader showed that as the liquid supply of Bitcoin decreased, the demand for the higher cryptocurrency increased as the number of BTC that had not moved on the chain for an extended period of time also increased.
As can be seen from the chart above, BTC currently has a liquid supply of nearly four million coins and the number has been steadily decreasing since June 2020 as whale and institutional investors have increased their exposure to the emerging asset class.
More evidence of the growth of big money players can be found by looking at the increase in the number of wallets containing more than 1,000 Bitcoins.
As the number of large wallets increased, the number of smaller wallets remained stable or decreased, indicating that “larger players are acquiring bitcoins from smaller players.”
PayPal delves into cryptocurrencies
Additional bullish news for the cryptocurrency sector came when PayPal announced that it plans to expand its cryptocurrency services to residents of the United Kingdom.
This is the first time that users outside of the US have been able to purchase cryptocurrencies through the platform which should be available on PayPal and Venmo apps by the end of the second quarter of 2021.
In an effort to keep up with the likes of PayPal and Cash App, Apple Pay has unveiled a new partnership with BitPay that will allow Apple Wallet users to use their BitPay card to make purchases.
It has also been shown that Grayscale Investments may soon bring a new level of exposure to decentralized finance as the newly filed corporate registry in Delaware shows that the asset manager is considering Yearn Finance as a potential future offering.
Choppy trading sets the tone in traditional markets
Traditional markets faced early pressure on Friday after February 11th announced that federal regulators had launched investigations in Robinhood and Reddit looking for signs of market manipulation in relation to the recent wild moves seen in stocks like GameStop and AMC.
After holding out against an early slowdown, the three major indices managed to move higher and finish the day positive, with the S&P 500 and the NASDAQ closing the session at record levels, up 0.47% and 0.50% respectively. The Dow also managed a positive gain of 0.09%.
The broader cryptocurrency market continued its bullish rally as many projects saw double-digit gains and new highs ever.
Ether (ETH) ventured deeper into uncharted territory on Friday by setting and setting an all-time high of $ 1,863, while Polkadot (DOT) was the top performer out of the top 10, seeing a 21% increase overnight. Overnight to get a new high of 29.52.
Other notable companies include Algorand Proof of Stake Protocol (ALGO), which increased 38% to a 2021 high of $ 1.84, and Tezos (XTZ), which saw its price rise 23% to a new record high of $ 5.41.
The total cryptocurrency market cap is now $ 1.48 trillion and Bitcoin’s dominance rate is 60.4%.