Buy Bitcoins? Analysts suspect start of Main phase
Bitcoin has seen a strong rally in recent weeks and today fittingly for the bullish 2021 outlook, the Bitcoin price has exploded by almost 12% to currently $32,687.
Analysts believe that Bitcoin’s main bull phase has now arrived. This comes despite some concerns shared months ago that the Cryptosoft cryptocurrency market was due for an overdone consolidation due to the pandemic and its impact on global markets.
BTC is in its main bull phase
According to crypto analyst Willy Woo, bitcoin is now in its main bull phase:
„If you are looking to get in to hoard bitcoin for the long term, don’t get in at the drop of a hat. You’re not going to sweat a few thousand dollars for a less than perfect entry when in a year it’s $100k, $200k, $300k… The main bull phase is here. The capital inflows are crazy.“
He cites in particular the incredible amount of capital inflows towards bitcoin at the moment. Technology analyst Kevin Rooke observed in December that the Grayscale Investments BTC Trust (GBTC) bought nearly 13,000 BTC off the market in a single day. He wrote on the matter:
„Bad news for BTC bears. Grayscale’s Bitcoin Trust just picked up 12,319 BTC in $GBTC in a single day. That’s more than the 11,512 BTC they added throughout last week when BTC broke its ATH.“
Will there be resets in bitcoin? Absolutely. Will bitcoin reach $100,000 or more? That’s hard to answer, but be aware that the price has risen extremely in the past and now big players like Microstrategy, PayPal, Fidelity and more are in the market buying up Bitcoin as a hedge to fiat currencies. To put it simply, there will be no more than 21 million Bitcoins.
Strong interest in Bitcoin
Confirming the feeling that Bitcoin is in a bull market, data shows that there is strong interest in the leading cryptocurrency.
Pantera Capital, a leading crypto asset fund, found that there is a large amount of retail demand for Bitcoin, as evidenced by PayPal’s crypto volumes. On this topic, the firm wrote:
When @PayPal went live, volume started exploding. The increase in itBit volume implies that within two months of going live, PayPal is already buying more than 100% of the new supply of bitcoins.#bitcoinshortage
Read: https://t.co/fb4d1xNxqx pic.twitter.com/yxQNAhsWJZ
– Dan Morehead (@dan_pantera) December 27, 2020
In the US, it is already possible to invest in Bitcoin directly via PayPal. In Europe, this will probably also be available towards the end of 2021. If you still want to safely invest in Bitcoin with PayPal, we recommend this guide: Buy Bitcoins with PayPal