Bitcoin has regained its $ 1 trillion market cap after months of struggle. Bitcoin’s low price was an opportunity not only for institutions but also for retailers to fill their pockets. This became visible in the huge transactions on the blockchain.
According to the data provided by Glassnode, massive transactions of over $ 10 million took place on the network in the past month.
According to the market observer and Chinese blockchain journalist Colin Wu, the higher proportion was over 70% and thus reached a record high.
Notably, this surge in activity came as the market calmed down after China’s crypto ban. The miners moved out and the traders finally found a hold, which could cause the price to start the trek at its previous all-time high.
The metric alone couldn’t determine the sentiment of the Bitcoin market, however, as market watchers found that the three largest whales have dumped nearly 50,000 coins in the past few days. Twitter user @LeverageMonkey highlighted
Whales are tipping over like you would not believe, the 3 largest whales have dumped around 50,000 coins in the past few days. These wallets always sell tops. Let’s see what happens … https://t.co/pHhLZPvGS1 pic.twitter.com/sZTe2T1LVq
– Leverage Monkey (@LeverageMonkey) October 10, 2021
Meanwhile, others also feared another demise of the greatest digital asset. In fact, JP Morgan Chase recently made its clients aware of the Bitcoin craze. The American investment banking firm said that Bitcoin appears to be a better protection against inflation than gold.
In his note, JP Morgan stated:
“The resurgence of inflation concerns among investors has renewed interest in using Bitcoin as an inflation hedge. Institutional investors seem to be returning to Bitcoin and may see it as better inflation protection than gold. “
The bank also stressed that institutional investors have recently returned to Bitcoin from gold. While BTC has flourished with an average CAGR of well over 200% for the past decade, gold has not moved in the past decade. JP Morgan listed three key factors behind the BTC rally.
The first was “recent assurances from US politicians that it is not intended to follow China’s moves to ban the use or mining of cryptocurrencies.” The second, “the reappearance of investor inflation concerns,” and the third, “the recent rise of the Lightning Network and second-tier payment solutions aided by the introduction of Bitcoin in El Salvador.”
Bitcoin’s popularity cannot be denied in the face of adversity. China’s crypto ban slowed market momentum, but once market participants adjusted to the change, there was another surge in growth. This may not understand the immediate future of Bitcoin, but the institutions can become long-term hodlers.