Analyst Willy Woo brought to notice that an increasing number of investors are holding bitcoins instead of trading them, anticipating a fair run for BTC in the first quarter of 2021. Bitcoin has fared exceptionally well in the past year, even though the world’s economies suffered turbulent times due to the Covid-19 pandemic.
Willy, an expert in on-chain market analysis, noted that due to endless money printing in the world by several central banks, there was an increase in the bitcoin investment.
Willy Released A Study to Show the Trend
Through his study about ‘Bitcoin Market Cap, Gain Per Dollar Invested’, he showed that bitcoin is currently at a $3.30 price gain against per dollar invested. He further added that the major investors tend to hold the bitcoin even harder as the price increases.
Willy also highlighted the reasons due to which the various investors are Hodling their BTC coins harder than before. First one being, the expected bitcoin’s bullish run in 2021 looks more promising; however, the investors would look at it as the bull rally after halving. Going by the past trends, bitcoin has rallied for around a year and quarter after every halving leading an all time high in BTC price. BTC has a nature of rallying after its halved, and the retail investors want to garner maximum benefits out of it and not being priced out.
Tech Giants Hodling BTC as Reserve Currency
Trends also indicate that many tech giants are holding bitcoin as a reserve currency to escape the economic uncertainty and vouching for the substantial fortune of the cryptocurrency. Grayscale, Square, MicroStrategy, and HUT mining are few heavy-weight tech firms that have invested in Bitcoin tremendously in the past few weeks. The institutional investors are showing a lot of trust in Bitcoin, strengthening its stakes.
Bitcointreasuries.org noted that the sum of 598237 Bitcoins that value at 6.8 Billion USD is held by the various institutional investors. This is almost 2.85% of the total available bitcoin.
Considering the recent inclination of mainstream tech firms towards Bitcoin and the significant investors holding on their tokens, stakes look high for Bitcoin in 2021.