Over 900000 active Bitcoin wallets push transactions to 3-year high – Nairametrics


As BTC market capitalization fast approaches the $200 billion mark, Messari’s Lead researcher, Ryan Watkins has crunched the numbers and predicts that if leading financial institutions allocate just 1% of their portfolios to Bitcoin, then BTC’s market cap could rise to above $1 trillion, 

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The lead researcher also explained that a small percentage allocation from endowments and foundations, sovereign wealth funds, pension funds, mutual funds and family offices, to BTC would result in around $480 billion of new money entering the Bitcoin market. 

“An aggregate 1% institutional allocation to Bitcoin can easily bring Bitcoin’s market cap above $1 trillion, or over $50,000 per BTC,Watkins added. 

READ MORE: 5 Nigerian companies with a combined market value of 5% of Nigeria’s GDP 

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READ MORE: About 33% of pension funds, hedge funds now own digital assets such as Bitcoin

Recall that the power of BTC whales, professional traders in the Bitcoin market cannot be overlooked. They are the most important players to large market movements in the BTC market, such as those levels seen during Bitcoin’s dramatic price decline in March as the COVID-19 pandemic intensified around the world. 

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“With more people looking to trade bitcoin, which is only becoming scarcer following the recent halving, bitcoin moving from the investment bucket into the trading bucket could become a crucial source of liquidity. However, one would expect this will only happen if bitcoin’s price rises to a level at which long-term investors are willing to sell,” Chainalysis researchers wrote. 

READ ALSO: Zilliqa, the fast-rising cryptocurrency that has gained more than 845% since March

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Chainalysis a leading crypto analytic firm also explained activities in the BTC market for the month of June. The report said; 

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“As of June 2020, roughly 18.6 million Bitcoin has been mined. We break that 18.6 million Bitcoin down into three buckets based on its movements to date:  

“Roughly 60% of that Bitcoin is held by entities — either people or businesses — that have never sold more than 25% of Bitcoin they’ve ever received, and have often held on to that Bitcoin for many years, which we label as Bitcoin held for long-term investment.   

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“Another 20% hasn’t moved from its current set of addresses in five years or longer. We consider this lost Bitcoin. That leaves just 3.5 million Bitcoin or 19% of all mined Bitcoin that moves frequently, primarily between exchanges, which we label as Bitcoin used for trading.” 





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