Research Shows American Investors’ Buying Spree is What’s Driving Bitcoin’s Surge
The post Research Shows American Investors’ Buying Spree is What’s Driving Bitcoin’s Surge appeared first on Coinpedia Fintech News
Bitcoin has seen a remarkable 25% increase in value over the last month. Strikingly, this surge has primarily occurred during U.S. trading hours, according to a recent research report from Matrixport, a leading crypto services provider.
U.S. Enthusiasm Fuels Bitcoin’s Ascent
Matrixport’s head of research, Markus Thielen, emphasizes the significance of this trend, attributing it to the growing enthusiasm among U.S. investors and institutions.
They are eagerly responding to the anticipation of a U.S.-listed spot Bitcoin Exchange-Traded Fund (ETF) becoming a reality soon. Thielen notes that this is a substantial development in the cryptocurrency world.
The Matrixport report sheds light on the global distribution of cryptocurrency owners. Despite Asia housing the largest number of crypto users, with an impressive 260 million, the buying power of U.S. traders and institutions surpasses all, showcasing an undeniable influence in the crypto sphere.
Technical Analysis and Predictions
Matrixport’s report also touches upon the technical facets of Bitcoin’s current rally, pointing out the strong upward momentum that has propelled Bitcoin past the $30,000 resistance level.
However, the report suggests a possible slowdown in this bull run, advising traders and investors to keep a close eye on the market’s movements. The analysis underscores Bitcoin’s potential to breach the $45,000 mark by the year’s end, based on a solid investment process proven successful this year.
As of the time this article was written, Bitcoin is experiencing some consolidation, trading within a contracting triangle on the 4-hour chart. A break above this pattern could see the cryptocurrency soaring past the $35,000 mark once more, with potential resistance at $37,000 and $40,000.
Conversely, a downward break could bring the price to test the $30,000 support, with further declines potentially targeting the $28,000 level. Bitcoin is currently worth $34,042.
The total crypto market cap has surpassed the $1.25 trillion mark. The market has witnessed a whopping 99% increase in trading volume, amounting to $92 billion across various platforms. Bitcoin, leading the charge with a 53% dominance, outperforms even the most volatile altcoins.
