By Hidayat Sultanli
On Mar 09, 2021
The recent economic movements in the USA resulted in a price increase in cryptocurrencies. The next stimulus package helped Bitcoin to hit $ 54,000. Besides Bitcoin, many cryptocurrencies are on an upward move.
The long-waited stimulus package is finally approved. The U.S Senate passed Biden’s $1.9 trillion coronavirus relief package on Saturday. This news affected cryptocurrencies positively. Since this news, cryptocurrency markets begin to take off. After the stimulus package passed by US Senate, Bitcoin began to gain value. BTC hit $ 54,000 and a $ 1 trillion market cap in the same day.
Bitcoin added more than $ 6k in 3 days following the stimulus package. BTC was trading on about $48,000 on Saturday. After the news, BTC began to increase in price. Bitcoin overcame the resistance level of $ 52k to move on to higher prices. On 9th March, Bitcoin hit $ 54,000 after 15 days. At the time of writing, the value of BTC was $ 54,092.
The price increase came with another benefit. The market capitalization of Bitcoin surged above $ 1 trillion. Bitcoin reached a price level of around $ 53,700 to claim back a $ 1 trillion market cap. Bitcoin passed a trillion USD by $ 8 billion. Currently, Bitcoin has 61% market domination. The highest market domination was 72% in early January.
Speculations about the expected crypto bullish period make people take off their cryptocurrencies from the exchanges. Less supply of Bitcoin results in higher prices. In this context, people decide to hold on to their cryptocurrencies outside exchanges. It displays their intentions about the future of Bitcoin.
According to Glassnode, BTC balances on exchanges are on a downward trend. The outflow of Bitcoins from crypto-exchanges continues. BTC balances on exchanges reached a 2-year low of 2,422,159.549 BTC. The trend is downward, and possibly we will see far low amounts in the coming weeks.
Bullish sentiment is not anywhere near to end. Cryptocurrencies will continue to increase in price.
Disclaimer: All information provided in the content is for informational purposes only and should not perceive as an investment, financial, or trading advice. Any investment decision you make should be a personal choice based on financial knowledge, experience, and market research.