Markets Today: bitcoin price rallies on bullish metrics

Markets up to date is an exclusive summary of the news that moves the bitcoiner economy. It is sent in advance by email to a list of subscribers and then published every Monday on CryptoNews. If you want to get the information in advance, subscribe to the list here.

Coinciding with the release of 24,000 bitcoins (BTC) from the release of shares in Grayscale’s bitcoin fund (GBTC), the price of bitcoin fell below USD 30,000

on Tuesday, July 20, a level it has not visited since last June, as reported by CryptoNews.

Wednesday was a positive day for bitcoin

as it managed an 8% rally from USD 29,800 to USD 32,181. On that day, The B Word event took place, which was covered by CryptoNews.

The event featured a panel on Bitcoin

by Cathie Wood of Ark Invest, Elon Musk of Tesla and SpaceX, and Jack Dorsey, CEO of Twitter and Square. Musk told the forum that Tesla would most likely accept bitcoin again, while Cathie Wood highlighted bitcoin’s role as a financial solution in emerging countries, as it is the most efficient vehicle for receiving remittances. In some of these countries, remittances represent a double-digit contribution to gross domestic product. For his part, Jack Dorsey reminded the audience that Bitcoin has been open since its inception and has become a solid Internet standard currency that everyone can use.

Perhaps that was the catalyst that caused the price of BTC to rise since that day. At the time of writing this article, the price of bitcoin, records a price of USD 38,390, which represents an appreciation of 9.6% since Monday, July 19.

Declining Whales

So-called bitcoin whales (entities with more than 1,000 BTC) comprise 26% of the bitcoin supply, but the wealthiest ones, those with more than 10,000 BTC, have just 3.75% of the supply and are declining. This, according to a longitudinal study

of bitcoin supply, conducted by analyst Willy Woo, and published by CryptoNews this Saturday, July 24. Markets Today: bitcoin price rallies on bullish metrics <img width=”589″ height=”393″ src=”https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/07/bitcoin-supply.png 589w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/07/bitcoin-supply-300×200.png 300w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/07/bitcoin-supply-391×260.png 391w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/07/bitcoin-supply-560×374.png 560w” alt=” /> Entities with more than 1,000 BTC and those with more than 10,000 BTC, are on the decline. Source: Willy Woo. Source: @woonomic.

So-called minnows, with less than 10 BTC, have 13% of the supply, half of what whales accumulate. However, Woo argues that when exchanges are included, the supply they control also represents small users, so this shoal of small fish would come to 30% of supply. This is evidence of the tendency for supply to be distributed among a larger number of participants.

Stumbling blocks of the stock-to-flow

model applied to bitcoin

The stock-to-flow

model, which has been applied to bitcoin price prediction, began to lose validity after the BTC price correction in mid-April, according to

an analysis

by CryptoNews, published last Wednesday 21. Markets Today: bitcoin price rallies on bullish metrics Markets Today: bitcoin price rallies on bullish metrics According to the S2F model, the price of bitcoin should be well above the current value. Source: PlanB. Source: lookintobitcoin.com.

According to the model, the price of BTC should currently be close to USD 80,000. Among the weaknesses of the model, it is mentioned in the article that it only takes into account the supply of bitcoin and the issuance of new coins, when there are external factors that have a direct impact on the price.

Featured tweet of the week

Markets Today: bitcoin price rallies on bullish metrics

Daily Growth

of new users of the Bitcoin network has remained on the rise in this bull cycle, even in the midst of the correction. In this tweet, on-chain data analyst Will Clemente compares user growth between two successive bull cycles.

The 2011 and 2013 cycle peaks, went from 1,819 to 5,488 users, or a 152% increase, while from 2013 to 2017 there is a 646% increase. Taking into account that, for many analysts, the peak of the current cycle has not yet occurred, Clemente asks what the growth between the last two cycles will be now.

Bullish metrics

On-chain data analytics firm Glassnode believes that entities that receive BTC on exchanges are growing, while those that predominantly deliver BTC are declining.

In a study by the firm, reviewed by CryptoNews, Glassnode claims that net bitcoin flows on exchanges have reversed to BTC outflows. “Right now, exchanges are recording net outflows of 36,300 BTC per month,” the firm says. This metric, as well as others of a bullish sign, were commented on last Wednesday the 21st, while another article addressing four bearish metrics was published on Tuesday the 20th.

New ETF filing filed with SEC

Global X, a New York-based firm specializing in multi-asset exchange-traded funds (ETFs), filed with the U.S. Securities and Exchange Commission (SEC) an application to launch a bitcoin ETF.

Global X explains in its proposal that it will issue common stock to be traded on the Cboe BZX Exchange. The name of the ETF would be Global X Bitcoin Trust and it has the backing of the oldest bank in the United States, Bank of New York Mellon. This ETF application joins those already filed with the SEC by companies such as VanEck, Fidelity, SkyBridge, and Grayscale, among others, which are awaiting the regulator’s decision.

JP Morgan extends access to bitcoin

From offering services related to bitcoin and other cryptocurrencies only to select clients, U.S. bank JP Morgan expanded access to its entire client base. According to a Forbes report, commented by CryptoNews, the bank offers access to the following financial instruments: Grayscale’s Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, Ethereum Classic products and Osprey Funds’ Bitcoin Trust.