On February 12th, Bitcoin (BTC) reached a new full-time high of $ 48,985, then returned to the $ 46,000 level.
A quick look at the 4-hour chart shows that cryptocurrency trading is taking the lead in what appears to be a short phase of consolidation, but BTC is still maintaining its bullish momentum with higher highs and lows.
If BTC manages to maintain its current pace and structure, it could rise to the $ 50,000 level by the end of the weekend.
A report published by Decentrader analysts showed that as the liquidity supply of Bitcoin shrinks, the demand for the leading cryptocurrency increases as more and more bitcoins have not moved along the chain for a long time.
Bitcoin floating offer. Source: Glassnode
As you can see in the chart above, BTC’s current liquidity is around four million coins, a number that has been steadily declining since June 2020 as whales and institutional investors increase their exposure to the emerging asset class.
More evidence of the growth of big money players can be found by looking at the increase in the number of wallets with more than 1,000 BTC.
As the number of large wallets grows, the number of smaller wallets remains the same or decreases, indicating that “big players buy bitcoins from smaller players.”
PayPal delves into cryptocurrencies
More positive news for the cryptocurrency sector came after PayPal announced plans to expand its cryptocurrency services to residents of the United Kingdom.
This is the first time that users outside of the US have been able to purchase cryptocurrency through the platform, which will be available in the PayPal and Venmo apps by the end of the second quarter of 2021.
To keep up with PayPal and the Cash app, Apple Pay announced a new partnership with BitPay that allows Apple Wallet users to use their BitPay cards to shop.
It has also been revealed that Grayscale Investments may soon move to decentralized finance to the next level, as the new Delaware registry shows that the asset manager considers Yearn Finance a potential offer in the future.
Choppy trading sets the tone for traditional markets
Traditional markets came under pressure early Friday after the announcement on February 11th that federal regulators had begun investigating Robinhood and Reddit for signs of market manipulation as a result of recent sharp moves seen in stocks such as GameStop and AMC.
After an early pullback, the three major indices managed to climb higher and finish the day in positive territory, as the S&P 500 and NASDAQ indices ended the session at record levels, at 0.47% and 0.50%, respectively. The Dow also managed to squeeze a positive 0.09% gain.
The broader cryptocurrency market continued to rally as many projects posted double-digit profits and new full-time highs.
Ether (ETH) plunged into unknown territory on Friday, hitting a new all-time high of $ 1863, while Polkadot (DOT) was the top 10, giving 21% overnight gains to a new high. 29.52.
Other notable companies include Algorands Pure Proof of Stake (ALGO), which rose 38% through 2021 at $ 1.84, and Tezos (XTZ), which rose 23% to an all-time high of $ 5.41.
Cryptocurrency total market cap is now $ 1.48 trillion, and Bitcoin’s dominance is 60.4%.