The bull run that occurred in 2017 is now repeating itself

Buying Bitcoin as the price of the coin falls is something that only those with large amounts of money do. At the moment, it is the large institutions that are accumulating Bitcoin at full speed.

Before the price drop that brought the digital currency back to around 40k, the market saw the arrival of institutional investors buying Bitcoin stacks.

Despite the fact that in less than a week the value has dropped by more than 10 thousand dollars, institutions continue to monitor the asset, buying it as it falls in value.

Although retail traders have been trading in the usual way, institutions have firmly held on to it. CryptoQuant reports that there is still no sale recorded by these big players, whose bitcoin holdings have yet to move since their over-the-counter deal was entered into.

Exchanges are experiencing a massive outflow of Bitcoin

On-chain assets have reached new all-time highs, mimicking 2017 bull market patterns. This is a bullish sign for the market, but it must be remembered that while there are similarities between this bullish race and that of 2017, the driving forces are extremely diverse.

While retail traders can be credited for sparking the bullish storm of 2017, institutional investors are evidently the driving fuel behind the current bullish wave. Meanwhile, there has also been a massive outflow from exchanges.

This growth, which is not recorded on the blockchain because most users prefer crypto exchanges, has seen a recent outflow of 12.000 BTC, most notably from Coinbase. This suggests that accumulation has yet to reach its peak.

Michael Saylor's MicroStrategy also recently added more Bitcoin to its wallet. The company announced its latest purchase a few days ago, amounting to 10 million dollars. In total, the company is estimated to hold over 90.000 Bitcoins, worth $ 4,8 billion!

Mempool records a large number of pending transactions

A sign of an upward trend was also reported in the Bitcoin mempool, where the number of transactions waiting to be validated is recorded.

As Willy Woo pointed out, mempool had an exceptional number of transactions waiting to be processed. The spike was triggered by the Bitcoin breakout at $ 20.000 last year. After reaching an all-time high of 2017, new users hit the market and the number of transactions increased simultaneously.

“Users are growing at an insane rate, like in the last weeks of the 2017 bull market; BTC is going mainstream, ”Willy Woo said.

The current all-time high of $ 58.000, coupled with the weakening US dollar, may also have prompted users to tighten their seat belts as the numbers are expected to double in anticipation of the next bull run.

At press time, Bitcoin is around 54k, but for the quotation in real time, you can consult our dedicated page.