Bitcoin is all prepared to achieve several other new all-time highs throughout 2021. The question regarding the retail investors coming on board looms large and heavy.
Many of the investors have been feeling a sense of validation in the market of cryptocurrency. This is especially due to the reason that the BTC price has successfully established an ATH at $34,778.
Future Rally For Bitcoin
The last time BTC had traded near the current level was when there was a bull run in 2017 and it managed to reach a high of approximately $19,783. The media has also taken a keen interest. NY Times has noticed that the present rally had a different vibe to it as compared to the previous one.
Numerous cryptocurrency communities will also be agreeing to this. As a result, it is important to dive deeper into the factors which are the major driving force behind the ongoing rally.
The 2017 bull run of Bitcoin was largely motivated by the retail investors placing their bets on the promising BTC market along with other smaller cryptocurrencies.
During that time, almost millions of investors in Japan, China, and South Korea became very powerful in the stock market. However, in 2020, the retail investors are no longer playing such a big role and remain uninvolved in this 1st bull run.
The investors are expected to hold long-term positions. They have been trying to get Bitcoin futures where the open interest on CME has lately topped $1B. They are also reinforcing the balance sheets instead of en-cashing them.
Although institutional investors remain ahead of the trend, they must also repeat the profitable patterns. For example, PayPal had announced in October that they will support the transactions of the cryptocurrency of 26M merchants. Users were also allowed to acquire, hold, and sell Bitcoin, Bitcoin Cash, Litecoin, and Ether on their platform.
