Bitcoin (BTC) Crosses $14,000 For the Second Time In A Week, Volatility Ensues

04. Nov 2020 Posted by Akolkar B on News

The world’s largest cryptocurrency Bitcoin has made strong moves gaining more than 25% over the last month. Over the last week, Bitcoin (BTC) has made two attempt to cross the crucial resistance of $14,000.

On Tuesday, November 3, Bitcoin (BTC) surged past $14,000 levels in a momentary surge before making a quick retrace. Previously, Bitcoin crossed this milestone last Saturday on October 31, as it turned 12.

There have been several reason behind the Bitcoin (BTC) price surge. The institutional money continues to flow into Bitcoin over the last few months. Over the last week, the Grayscale Bitcoin Trust saw a record inflow of $215 million surpassing all previous investments.

At press time, the Bitcoin Trust currently holds 481,711 BTC worth around $6.7 billion as the Trust aims to reach half-a-million BTC by the end of the year 2020. This is very much possible looking at Grayscale’s October growth rate of adding 32,000 to its Bitcoin Trust.

If the digital assets management platform continues at this rate, it will soon be holding around 1 million BTC i.e. 5% of the overall Bitcoin supply. This has been a growth of explosive growth for Grayscale as more institutional players have been pouring massive sums of money in BTC as a hedge against the rising inflation.

Over the last three quarters, Grayscale’s Bitcoin Trust has attracted 70% of the total weekly inflows coming to the asset manager. On the other hand, Grayscale’s Q3 report, the digital asset manager reported that the total assets under management (AUM) of the Bitcoin Trust has grown by an additional $2 billion. The Bitcoin Trust has registered 147% in AUM year-to-date.

Apart from Grayscale other big players are taking huge positions in Bitcoin (BTC). Business intelligence firm MicroStrategy purchased $425 million worth of Bitcoin at around $10,500 average price. Jack Dorsey’s Square Inc bought $50 million worth of BTC last month.

Bitcoin’s today’s correction is largely driven with uncertainty in the U.S. elections. Not only Bitcoin, but almost everything including U.S. Dollars, stocks and gold have entered sharp correction. The recent drop in Bitcoin price is noteworthy in a way that it usually have an inverse correlation with the USD. However, both have been falling at this moment which is unusual.

At press time, Bitcoin (BTC) has been trading at a price of $13,802 with a market cap of $255 billion.