The cryptocurrency markets are back in the green. Bitcoin is surging, and is now past the psychologically significant $7,500 line. Moreover, this comes as fresh data suggests crypto investors are hodling, likely in anticipation of the Bitcoin halving event.
Bitcoin breaks past $7,500
At the time of writing, Bitcoin is trading at a price of $7,556. The following market visualization, from COIN360, illustrates how the entire crypto market is currently in the green. This green wave comes as fresh data reveals that Bitcoin investors are turning bullish.
Specifically, breaking data from the Glassnode monitoring resource reveals that long-term investors are now stocking up on Bitcoin. This comes with less than a month left until the Bitcoin halving event – which is widely seen as bullish.
According to Glassnode’s official Twitter account, the net position change of HODLers are bringing this metric to yearly highs. “Long term investors are increasing their positions – and they’re accumulating more $BTC each day”, Glassnode tweets.
Over $500M worth of Bitcoin is added by long-term investors every day
Perhaps most notably, that long-term investors crypto purchases are accelerating is especially interesting. At the current rate, long-term investors (or hodlers) are adding more than 75,000 Bitcoin per day to their positions.
For reference, a Bitcoin price of $7,500 with these volumes means investors add more than $562.5 million per day. If this continues, it could clearly help drive the price of Bitcoin higher. What’s more, it is possible that the fast-approaching halving event could lead to FOMO among investors.
FOMO, or Fear Of Missing Out, is a psychological mechanism that is often responsible for quickly ballooning prices of assets. Nevertheless, the upcoming Bitcoin halving is not merely an obscure metric.
Bitcoin whales and hobby investors alike are hodling
Even amateur investors can understand the implications of effectively cutting the supply of an asset in half. Stock-to-flow, or S2F, models suggest that this could lead to a massive cryptocurrency rally.
A recent Bloomberg report indicates that the Bitcoin price is readying for a “2017-like leap”. Moreover, Anthony “Pomp” Pompliano believes Bitcoin may be about to rally to a whopping $100,000.
As such, it seems investors are taking note of the bullish market indicators. Glassnode also recently said the amount of Bitcoin whales is higher than at any point during the past two years. With that said, it seems small-scale investors are also topping up their Bitcoin holdings.
Data from last week suggests Americans are using their $1,200 stimulus checks to buy crypto. No matter what, it will be interesting to keep an eye on the crypto market in the coming days and weeks.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.