Bitcoin has undergone a strong rally over the past month as buyers rush in after the early 2020 crash. The price of the leading cryptocurrency currently trades for $18,600, which is almost the highest the cryptocurrency has traded since the 2017 bull market peak.
While there appear to be many that believe the coin will move higher, data shows the coin is being sold to some extent.
Bitcoin Is Being Sold Into This Rally, On-Chain Data Shows
Willy Woo, a prominent Bitcoin on-chain analyst, there are old holders of BTC that are selling their coins into this rally:
“Old hands have been selling into this rally since the start of Nov (BTC @$13k)…’
While this represents increased selling pressure in this nascent market, Woo isn’t all too worried. He went on to explain that while previous tops were marked by spikes in the destruction of Bitcoin Days, there is likely still smart money that are buying any dips:
It used to be that peaks in destruction or dormancy would be a bad sign for the market as old Bitcoins have more experienced masters, thus smarter money; this would predict a price drop. These days not always, OG whales also sell bottoms. Smarter money has arrived. Post this now as while there’s so much FOMO and strong fundamentals being blasted out, there’s also signs of the market being overheated locally. I’d be very surprised if we break all-time-high on the first try without a rejection, or consolidation, before a second run at it.
This much has been made clear by the entrance of institutional participants in the cryptocurrency space. These participants will drive Bitcoin higher while old money exits.
Retail Money Entering En-Masse
Underscoring this, retail money is entering the crypto space en-masse.
Pantera Capital co-CIO Dan Morehead recently wrote on the matter of PayPal’s users accumulating a large percentage of the Bitcoin being mined:
“When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is already buying almost 70% of the new supply of bitcoins. PayPal and Cash App are already buying more than 100% of all newly-issued bitcoins.”
Analysts think that this retail activity will be critical in driving the price of the leading cryptocurrency to new all-time highs.