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- Despite the Tesla pump, the Bitcoin price remains stuck in its consolidation range, with the next few days promising bullish momentum.
- Both whales and miners are signaling that it is “crazy” to sell Bitcoin now.
Elon Musk has done it again. The second richest man in the world – behind Amazon CEO Jeff Bezos – has triggered a pump with his news that Tesla will now accept Bitcoin as a payment method for US customers, which caused the BTC price to rise by 4% to $56,400.
After the Bitcoin price was rejected three times at the $60,000 mark since mid-March and has been trapped in a consolidation phase since then, Musk has breathed new life into the market, even though BTC remains in the consolidation zone below $60,000 for the time being. However, a look at the next few days promises further bullish stimulus for the market.
As macro analyst Alex Kruger noted, BTC inflows through stimulus checks have been a disappointment so far. “Maybe surveys on the amount of money to be allocated to crypto purchases were vastly off-mark,” Kruger said. However, as Yahoo! Money reports, a second batch is scheduled to be released to U.S. citizens starting today, so “it’ ain’t over yet.”
Stimulus checks’ inflows have been a disappointment insofar. Maybe surveys on the amount of money to be allocated to crypto purchases were vastly off-mark. It ain’t over yet though. pic.twitter.com/rYZDVYj88I
— Alex Krüger (@krugermacro) March 24, 2021
Also, undoubtedly bullish should be the launch of Morgan Stanley’s Bitcoin service starting next week, according to Eric Weiss, CEO of Blockchain Investment Group. Access to the funds is to be granted only to individuals who have at least $2 million in assets, as well as investment firms that have at least $5 million with the bank.
Even though the bank limits investments to 2.5% of total net assets, the launch of Morgan Stanley’s service could contribute to a further tightening of Bitcoin supply and be another boost for the market.
Who is selling BTC one week before Morgan Stanley finally offers it to their $5 trillion of capital that’s been demanding access to #bitcoin
— Eric Weiss (@Eric_BIGfund) March 23, 2021
Whales and miners send bullish signals for bitcoin
Meanwhile, Bitcoin miners are also currently signaling that their period of steady selling pressure may be coming to an end. As CNF reported, miners have been exerting steady selling pressure on Bitcoin since the beginning of the year. After the end of February saw the first two days in 2021 when miners hodled more BTC than they sold, yesterday was now the third day, as MicroStrategy CEO Michael Saylor noted.
It is rational for publicly traded #Bitcoin miners to become net purchasers of BTC rather than sellers. https://t.co/aRQjgZLfwf
— Michael Saylor (@michael_saylor) March 23, 2021
As did Eric Weiss, on-chain analyst Willy Woo expressed today that it is “crazy” to sell Bitcoin now. “Seriously strong long-term holders are buying this dip”. To back up his assertion, Woo cited two charts.
The first chart shows that Bitcoin continues to be withdrawn from exchanges at a rapid pace. As Woo analyzed, it is mainly a U.S. entity. “At the scale of the withdrawal it’s likely an institutional yet to be announced buyer,” Woo claimed. The second chart shows that coins are increasingly moving to “strong hands with minimal selling history.”
Anyone selling right now is cray cray. Seriously strong long term holders are buying this dip. pic.twitter.com/wVhfMOHaDl
— Willy Woo (@woonomic) March 23, 2021