Why Ethereum is unlikely to drop below $1,500 anytime soon

March 22, 2021 Editor Ethereum 0

The number of entities owning more than 1000 Bitcoins has hit a one-month low, amid the high volatility in play at the world’s most popular crypto market, as some institutional investors take off some gains.

Data obtained from Glassnode reveals that the number of wallets holding 1000 Bitcoins just reached a 1-month low of 2,266.

However, it’s key to note that as the world’s most popular crypto made a new high, traders expected some form of price correction, and that’s why there is a significant amount of market volatility, with sellers and buyers trying to take hold.

At press time, Bitcoin traded at $57,371.04 with a daily trading volume of $51 billion and is down 2.28% for the day.

Nikolaos Panigirtzoglou, a renowned market expert from JP Morgan, in a report, points out why Bitcoin bulls seem to be suffering from exhaustion as the flagship crypto retail investors have picked up the slack amid an apparent plunge in institutional inflows so far this quarter.

According to data released by JP Morgan Chase, retail investors bought about 187,000 bitcoins so far this quarter, compared to roughly 172,684 by institutional investors when using Square and Paypal data as a proxy.

That being said, in bull markets old Bitcoin tends to move more. This increases the relative supply of younger coins in the network.

  • At previous Bitcoin tops, around 50% of the Bitcoin supply was younger than 6 months.
  • It is currently significantly below this level (36%).

Data also showed that about 7.3% of bitcoins last moved at prices above $1 trillion. This is pretty solid price validation; $1 Trillion is already strongly supported by investors. There’s a fair chance we’ll never see Bitcoin below $1 trillion again.