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Overnight, the price of “Bitcoin” hit a new high of $ 37,000 on Wednesday for the first time since it emerged 12 years ago, registering a 10% increase in just 12 hours.
According to an analysis by the specialist site CryptoSlate, the main catalyst for this rapid jump is the violent accumulation of Bitcoin orders on the Coinbase platform.
Over the past week, it has been observed that as the price of Bitcoin rose on the Coinbase platform, other significant increases followed.
What is the impact of Coinbase on the rise in Bitcoin prices?
When there is a bonus for Coinbase, it means that buyers on the platform are relentlessly looking to buy “Bitcoin”. This is leading to an increase in the demand from buyers for digital currency all over the world, resulting in a very rapid increase in the price.
Supply and demand policy
Although high net worth individuals typically buy Bitcoin through Grayscale Bitcoin Trust and CME BTC Futures Exchange, the massive buildup of Bitcoin in MicroStrategy on Coinbase shows that high net worth investors can still purchase digital currency on Coinbase.
The timing of the bounty for Coinbase is crucial given the emerging selling pressure in Asia. On January 5, data from CryptoQuant showed that the South Korean ‘whales’ had deposited $ 60 million at Bithumb, the largest cryptocurrency exchange in South Korea, and one of the few exchanges that can operate. such a significant demand if it emerged.
And given that the price of Bitcoin rose overnight despite Bithumb’s large deposit, it’s possible that buyers in the United States dominated sellers in Asia.
Record levels
On the other hand, when a certain level is breached with stacked sell orders, it can lead to the liquidation of a series of short positions, pushing the price of Bitcoin higher.
The price of “Bitcoin”, which ranks first among cryptocurrencies in terms of market value, broke through the $ 20,000 level for the first time on March 16, and since then a rally has pushed digital currency to jump over 800%.
Bitcoin’s market value hit $ 655 billion on Wednesday, an increase of $ 68 billion in just 24 hours.
In a note released Monday, JP Morgan set a bold long-term price target for Bitcoin, expecting the cryptocurrency to hit $ 146,000 in light of its competition with gold as a store of value, according to CNBC.
The record rise in “Bitcoin” observed in recent weeks was also due in part to the entry of larger investors into the market.
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