The ongoing economic crisis in China has threatened the crypto space. With the increase in FUDs BTC price dropped by 11% within 24 hours. Analysts and investors have considered this dip as a buying opportunity.
Well, Glassnode, a crypto metric platform revealed data that shown illiquid supply hit new ATH reaching 14.43 million BTC. This describes that based on the current Bitcoin circulating supply of close to 18.8 million BTC, the illiquid supply of BTC locked in cold wallets is 77%. And only 23% of BTC is available for trading. This supply shock could boom the Bitcoin value with an increase in demand.
Bitcoin’s liquid supply has been demonstrating maturation as coins from $30k-$40k grow. In addition to this Bitcoin highly liquid supply is at a multi-year low reaching 3.138 million BTC. Putting all together, only fewer coins are available to trade, at the generation cycle low. And the trend is bullish says on-chain analyst Checkmate.
Analyst Say Bitcoin Price will Take A Parabolic Way In The 4th Quarter!
Lark Davis, a popular crypto analyst addressing the present Bitcoin price drop said he is bullish on Bitcoin and listed out Bitcoin catalysts.
Pointing out to the historical Bitcoin price trends analyst said quarter 4 always turned out fruitful for the asset. He went on to explain that in the previous two bull runs large sell-offs occurred in July and September. In the last two bull runs Bitcoin went on for a parabolic yearly finish. The analyst is anticipating the same trend to repeat here.
Lark Davis Lists Out Potential Bitcoin Catalysts!
Analyst Lark Davis believes that the SEC is likely to approve a Bitcoin futures ETF soon, but he is not sure about it. Speculations say Bitcoin ETFs will be launched in October.
Major company buying BTC and reigniting corporate treasury FOMO
Microstrategy, a business intelligence company continuously purchasing bitcoin. As per the recent report, the company owns 105,085 bitcoins at an aggregate cost of $2.7 billion.
Additionally, analysts said if Ripple wins the case against SEC it will have a positive impact on the whole crypto market. And BTC price will boom if the US gives regulatory clarity to the asset, he added.
On the downside, the analyst says, if SEC rejects BTC ETFs and continues to crush exchanges and stablecoins with lawsuits then BTC prices won’t perform as expected. Overall, Lark Davis believes Bitcoin will be the greatest wealth creator by the end of 2021.