For the price of Bitcoin (BTC), this could be the catalyst: record Revenue before the end of the year?
It is thought that this will be a serious catalyst for BTC.
The leading cryptocurrency rose over the weekend after its declining performance over the past week, and Bitcoin rose again above $ 19,000. Coincidentally, as the price of Bitcoin (BTC) rose, the volume of negative-yielding debt also reached an all-time high of $ 18.4 trillion.
Global Debt Could Push Up Bitcoin Price
In recent months, institutions and high-net-worth investors have increasingly begun to invest in Bitcoin as an inflation protection. Taking this trend into account, macro analysts and market analysts say that record levels of global debt could be a catalyst for a price increase for BTC.
According to the statements, there are three main macro factors that can have a direct impact on the price of Bitcoin in the short term: US incentives, the US Dollar Index (DXY) and negative-yielding global debt.
If the US approves a new stimulus package in the near term, it could lead to a recovery of risky assets and therefore the price of Bitcoin. But according to emerging data, DXY is currently on the rise due to the coronavirus vaccine and the end of elections.
The high DXY is causing alternative value repositories such as gold and Bitcoin to withdraw. So if the value of the dollar rises, the value of Bitcoin and gold against the dollar will naturally decrease.
In the past few days, on the other hand, Bitcoin has been rising despite the dollar’s recovery. This trend suggests that positive macro factors, such as growth in negative-yielding debt, outweigh potential risks.
Interest In Bitcoin Is Growing
In recent statements, Holger Zschaepitz, a market analyst at Welt, stressed that corporate interest in Bitcoin is growing as a result of the growth of global debt.
Global debt has reached $ 18.4 trillion and institutional investors ‘ interest in Bitcoin has grown, according to Zschaepitz. So Bitcoin rose again to over $ 19,000.
On the other hand, the increase in corporate Bitcoin demand is also evident in various markets. For example, the open position of the CME Bitcoin futures market has become the second largest market in the global market, surpassing Binance. As the CME Bitcoin futures market is primarily designed for accredited and institutional investors, it shows that the trading activity of institutions in the Bitcoin market is growing.
Bitcoin is now at a critical point where it needs to pass $ 20,000, an all-time high, to see a bigger rally. November and December saw huge declines in all moves to exceed $ 20,000, indicating that there were large sales walls in the $ 20,000 band.
So it is thought that BTC will start a new rally at the point where corporate purchases beat sales pressure.