3.4m Bitcoin Available As BlackRock’s CIO Says BTC to Replace Gold

Source: Adobe / Maestro7

3.4 million Bitcoin (BTC) are available to buyers when demand increases, according to the specialist for blockchain analyzes Chain analysis saidThis notes that first-time BTC buyers and buyers looking to offload fiat currencies for BTC as a hedge against worrying macroeconomic trends are responsible for much of the current demand. Meanwhile Rick Rieder, BlackRockGlobal Fixed Income’s chief investment officer said he thought BTC “could largely replace gold”.

According to Chainalysis, the amount of liquid or trader-held BTC is currently similar to the 2017 bull run. However, the amount in illiquid wallets controlled by investors is much higher, equaling 77% of the 14.8 million BTC mined that are not classified as lost are added.

In November, an average of 1.715 million BTC changes hands on crypto exchanges per day, or a little less than in October. Compared to the first 19 days in November last year when BTC fell from over $ 9,000 to $ 8,000, the average trading volume was down 41%.

This year, according to Chainalysis, demand is increasing, which is reflected in increasing inflows to exchanges and trading intensity on exchanges.

3.4M Bitcoin available as BlackRock's CIO says BTC should replace Gold 102
Source: markets.chainalysis.com

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3.4M Bitcoin available as BlackRock's CIO says BTC is replacing Gold 103
Source: markets.chainalysis.com

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The research team also said that 2017 saw the greatest demand from individual retail investors buying with their own personal funds, many of whom had varying levels of experience and knowledge of cryptocurrency.

“As anyone reading the news can tell you, 2020 is the year institutional dollars flow into Bitcoin,” they said, adding that this trend appears to be driven by a desire to hedge against macroeconomic uncertainties.

Today BlackRocks Chief Investment Officer for Global Fixed Income told CNBC that BTC is “much more functional” than gold and that the most popular cryptocurrency could replace the yellow metal. BlackRock had $ 7.4 trillion in assets under management at the end of last year.

Meanwhile, the data also shows an increase in the high quality transfers sent by exchanges in 2020.

3.4M Bitcoin available as BlackRock's CIO says BTC should replace Gold 104
Source: blog.chainalysis.com

“Exchanges sent 19% more transfers worth $ 1 million or more in 2020 while Bitcoin price was over $ 10,000 compared to 2017. This suggests that the people behind those transfers are behind them to spend more money than we would expect if larger investors did. ” involved, “they said.

Today managing director at a large crypto asset management company Grayscale, Michael Sonnenshein, said that her team “invested over USD 188 million in the Grayscale Bitcoin Trust yesterday alone.”

BTC is trading at USD 18,719 (16:38 UTC) and is up 4% in one day and 16% in one week. The price rose 46% in a month, 145% in a year, and is 7% off its all-time high of $ 20,000.

“If selling pressure increases on the basis of traders securing their profits, the price could easily fall towards $ 16,000. However, if the driving force behind Bitcoin’s uptrend is strong enough, the BTC / USD cross could above 18,200 USD is falling for a relatively short time, “said Greg Waisman, co-founder and chief operating officer of Mercuryo.io, a cryptocurrency payment ecosystem, recounts Cryptonews.com.

According to him, surpassing USD 19,892 will be yet another step to reach new historical highs at 127.2% and 141.4%. Fibonacci retracement Levels at USD 24,500 and USD 26,830 respectively.

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Further findings and comments:

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(This article was updated at 13:36 UTC to include a quote from Michael Sonnenshein, Managing Director at Grayscale, and comments from Rick Rieder, BlackRock’s Chief Investment Officer for Global Fixed Income. This article was also updated at 16:27 UTC to the comments of Rick Rieder. The BTC price has also been updated. At 17:46 UTC an infographic was added by Google Trends.)