Bitcoin price rallied above $12,000 on October 20, 2020, for the first time since August. The recent price hike only suggests that the largest cryptocurrency by market capitalization is up for further gains.
Bitcoin On A Steady Rise
The price range for Bitcoin traded somewhere between $11,672.69 to $12,047.10. The recent price spike was followed by Bitcoin streaking on a six-day gain this past week. Before breaking above the $12,000 price mark, BTC had to overcome a large number of sell orders slightly below that level.
Simon Peters, the analyst at investment platform eToro, says:
“Bitcoin has been on a steady rise over recent weeks, driven partly by the news of Square’s $50 million bitcoin buy, and perhaps more substantially because of recent comments from U.S. Federal Reserve Chairman Jerome Powell regarding CBDC adoption in the U.S.”
According to CryptoCompare, the last time, BTC traded above the $12,000 level was on August 17.
Average BTC Transaction Value Climbs 500% Since July 2020
The average value of Bitcoin transactions has also increased since July this year. Four months back, the average Bitcoin transaction value was approximately $25,000 per transaction. Yesterday, it represented a yearly high of $151,000 per transfer and an increase of more than 500%. The average value of a transaction increased to almost $50,000, up from $105,000 within the last 48 hours.
The $151,000 average value represents 190 times more than Ethereum’s average transaction value at $793. Meanwhile, the daily number of Ethereum transactions increased by 30% on Aug 10. The number of Bitcoin active addresses have fluctuated somewhere between 650k and 970K within the past 4 months.
Over the past months, large institutional investors such as Grayscale, Microstrategy, and Jack Dorsey’s Square have been significantly taking interest in increasing their BTC holdings. By the end of September, Grayscale controlled at least 449,900 BTC or 2.4% of the current supply of Bitcoin followed by MicroStrategy with 38,250 BTC holdings. Two weeks later, Dorsey’s Square purchased approx. 4,709 BTC.