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93M is All it Takes for Bitcoin BTC to Gain by 1

$93M is All it Takes for Bitcoin (BTC) to Gain by 1%

JOHN P. NJUI   •   BITCOIN (BTC) NEWS •   MARCH 18, 2021

In brief:

  • Bitcoin is more sensitive than gold to inflows of fiat
  • According to B0fA, a $93 million injection into Bitcoin would result in a price appreciation of 1%
  • Gold would need $2 Billion to achieve a similar feat
  • Bitcoin’s price action is yet to be overheated on a fundamental level
  • 1% of Stimmy Checks could send Bitcoin to $73k

Large fiat investments in Bitcoin have been observed to have a positive impact on the price of BTC. According to a Bank of America strategist, a net inflow of $93 million would result in a 1% price increment in Bitcoin. This means that Bitcoin is more responsive to fiat purchases in large quantities compared to Gold which would need $2 Billion to move by a similar percentage.

The full statement by the BofA strategist can be found below courtesy of Bloomberg.

Bitcoin is extremely sensitive to increased dollar demand.

We estimate a net inflow into Bitcoin of just $93 million would result in price appreciation of 1%, while the similar figure for gold would be closer to $2 billion or 20 times higher.

In contrast, the same analysis for the 20-year-plus Treasuries shows that multibillion money flows do not have a significant impact on price, pointing to the much larger and stable nature of the U.S. Treasuries markets.

Bitcoin is Not Overheated on Fundamentals

With respect to Bitcoin’s current price action, veteran Bitcoin analyst, Willy Woo, believes that BTC is yet to be exhausted on a fundamental level. Mr. Woo cites long term relative strength index on investment activity on the Bitcoin blockchain as the basis of his conclusion. He shared his analysis of Bitcoin through the following tweet.

1% of Stimmy Checks Could Send Bitcoin to $73k

The month of March has had a history of being a red one for Bitcoin. Therefore, the King of Crypto still has a chance of either consolidating or testing lower levels of $52k or even $48k before the month’s end.

However, eligible US residents have started receiving their $1,400 stimulus checks that could end up buying Bitcoin and propping the value of BTC above $60k.

According to CNBC, the US has issued 90 million stimulus checks worth $242 Billion.

In a hypothetical situation where 1% of this amount ($2.42 Billion) ends up buying Bitcoin, the stimmy checks could prop the value of Bitcoin by roughly 26% using the above data from BofA. Additionally, using Bitcoin’s current price of $58k, a 25% increment would result in Bitcoin hitting $73k.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Visit MarketHive to learn more: http://markethive.com/jeffreysloe

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