Bitcoin (BTC) Price Dives Below $11,000 Hitting A New Low Over the Last Month

03. Sep 2020 Posted by Akolkar B on News

Over the last hour or two on Thursday, September 4, BTC has plunged more than $500 on the charts slipping below its crucial support of $11,000 and hitting a new low over the last one month.

At press time, BTC has crashed more than 4.62% and is currently trading at $10,874 with a market cap of just over $200 billion, as per the data on WorldCoinIndex. Blockchain intelligence firm Chainalysis has reported that cryptocurrency exchanges have been witnessing a sudden surge in inflows of Bitcoin. Well, this was an indicator that investors were preparing to liquidate some of their holdings.

Tweeting about the same Chainalysis chief economist Philip Gradwell wrote: “Bitcoin inflows to exchanges were 92k yesterday, highest in 37 days, as people rushed to sell at near $12k prices of 1 September. That sell pressure has likely not been fully worked through yet”.

Long term holders still continue to remain unstirred while holding their positions in Bitcoin. Over the last few weeks, several reports circulating in the market suggest that nearly 60% of the total BTC supply hasn’t moved in a year.

Similarly, data from blockchain intelligence firm Chainalysis show that out of the 21 million BTC, only 3.5 million were in active circulation over the last few years.

Founders of crypto exchange Gemini - Tyler and Cameron Winklevoss - have recently predicted that Bitcoin’s long-term value shall be equal to $500,000. The Winklevoss twins are bullish on Bitcoin’s long-term prospects suggesting the Bitcoin will overtake gold as a leading safe-asset haven for global market investors.

They said that Bitcoin’s ability to be quickly transferred will make it a more valuable asset as a store of value in comparison to gold and oil.

On the other hand, a growing number of financial institutions are warming up to the world’s largest cryptocurrency. Recently, Fidelity Investments submitted a fresh filing to the U.S. SEC for the launch of its new Bitcoin Index Fund in the market. As per reports, this will be a “passively-managed, bitcoin-only fund available to qualified investors”.

Speaking about it, Fidelity wrote: “Fidelity has made a long-term commitment to the future of blockchain technology and to making digitally-native assets, such as Bitcoin, more accessible to investors.”