The Shrinking Supply of Bitcoin
Since June 2020, Bitcoin has been playing a game of hide and seek with its liquid supply, which has been on a steady decline. What does this mean for traders? In simple terms, it suggests that holders are clinging onto their precious BTC like a toddler with a favorite toy. The reluctance to sell could indicate confidence in future price increases or perhaps a healthy dose of fear in a volatile market.
Rising Demand Among Institutional Investors
On the flip side of the coin, demand seems to be on a delightful upward trajectory. Institutional investors are stepping into the spotlight, and recent reports reveal that major players are eyeing Bitcoin with intrigue. Specifically, Morgan Stanley’s subsidiary, Counterpoint Global, is reportedly considering Bitcoin as a potential asset. It seems they’re not just looking for a quick fling; they believe its market value could rise significantly based on solid fundamentals.
JPMorgan’s Hesitant Interest in Bitcoin
Meanwhile, JPMorgan Chase is playing hard to get. Co-president Daniel Pinto expressed that while the bank might eventually dip its toes into Bitcoin services, the current demand isn’t quite up to snuff. That said, Pinto acknowledges the potential for growth, signaling that Bitcoin’s popularity could soon explode like a surprise party for an unsuspecting guest.
Bitcoin’s Market Dominance: A Mixed Bag
Despite all the bullish news, Bitcoin’s dominance is fluttering somewhat nervously, dropping from about 69.71% in early January to 60.9% recently. This indicates that altcoins have begun to steal the spotlight, proving that in the world of cryptocurrencies, nothing is certain, and competition is fierce. While Bitcoin may be the big boss, the underlings are definitely starting to make their mark.
Altcoin Watch: The Next Big Thing?
As Bitcoin’s reign is being tested, many are focusing on the charts of top altcoins to predict what might trend next. With substantial movements in the altcoin market recently, it’s time to turn our eyes towards potential candidates that could make headlines in the coming days. Will any altcoin dethrone the king? Only time will tell!
