Fidelity analysts identified the main reason for the change in the Bitcoin price.
Major holders of the world's leading cryptocurrency and investment funds may withdraw over 6 million bitcoins from circulation by the end of the year. This will increase the world's leading cryptocurrency's shortage and support its price above $110,000, according to experts at Fidelity.
The share of Bitcoin held by large investors has been gradually increasing since 2016, and the volume of coins on the balance sheets of public companies with portfolios of more than 1,000 BTC has been increasing since 2020.
“We project that these corporate investors will own more than 6 million BTC by the end of 2025—or over 28% of the total supply of 21 million BTC,” the analysts suggested.
Total bitcoin reserves held by corporations and exchange-traded funds have increased by 30% since the beginning of January, from 2.24 million to 2.88 million BTC. According to Fidelity experts, “whales” and “sharks” are also accumulating bitcoin at record rates, while the coin's reserves on centralized platforms are declining.
The current situation reflects growing interest in self-storage of cryptocurrency and long-term investment strategies, according to Fidelity representatives.
Earlier, MN Consultancy founder Michaël van de Poppe stated that $117,500 is currently the key resistance level for Bitcoin. The crypto analyst believes that breaking this mark will pave the way for new price records.
Source: cryptonews.net
