Bitcoin Flies Past $32K Handle Records A New All Time High: Coinbase Frenzy Buying Activity Spiked Price

By: Mark Jessy

January 03, 2021 3:27 AM

Bitcoin (BTC) has surpassed the $32k price zone, and has jumped very close to the $33k range. At around 05:30AM (GMT), the crypto asset spiked to $32,723 per bitcoin reaching another all-time price high.

BTC is up 5% during the last 24 hours, 15% for the week, 58% during the last month, and 187% for the 90-day span. Over the course of the last 12 months against the U.S. dollar, bitcoin (BTC) has gained 315%.

The crypto asset’s hashrate on Saturday morning is hovering around 135 exahash per second with 18 mining pools dedicating hash at the Bitcoin blockchain. The mining operation F2pool captures 18% of the hashrate or 26.31 exahash per second.

Lots of crypto supporters celebrated bitcoin’s new price rise. After the $30k crossing, the market maniac Holger Zschaepitz said: “Bitcoin tops 30k for the first time ever only 17 days after cryptocurrency crossed 20k.”

Another individual wrote: “Well, bitcoin breaking $30k is [definitely] a solid way to start the year.”

The onchain researcher, Willy Woo, said people shouldn’t stress investing in bitcoin at this price when the price could very well reach $300k. “If you’re looking for an entry to HODL Bitcoin long term, don’t nickel and dime an entry,” Woo tweeted. “You’re not going to sweat a few thousand dollars of non-perfect entry when it’s $100k, $200k, $300k in a year.” Woo added:

The main bull phase is here. Capital inflows [have] gone nuts.

Since bitcoin (BTC) started its bullish rise crushing the 2017 all-time high, the crypto asset has not seen any major pullbacks yet. In 2017, BTC saw roughly four 25-38% losses during the ride up. One analyst says that the monthly momentum indicator shows we may see a big pullback soon.

Coinbase recorded a large spike in buyer activity overnight as the price of Bitcoin (BTC) surpassed $32,500 on Jan. 2. Analysts say the trend was reminiscent of MicroStrategy’s Bitcoin accumulation, possibly fueled by institutional buy orders. As a result, BTC surpassed $32,000, reaching a new all-time high.

Coinbase buyers were the catalyst for the Bitcoin rally
In the last 48 hours, Coinbase has continuously seen a high premium compared to Binance. At one point, Bitcoin on the exchange was $100 more expensive than on Binance.

When the price of Bitcoin surpassed $30,000, the premium reached as high as $350. For instance, when Bitcoin was trading at $30,000 on Binance, BTC was priced at $30,350 on Coinbase.

Prior to the rally, Ki Young Ju CEO of CryptoQuant said that low Coinbase outflows posed a risk to Bitcoin’s rally. He further added that outflows would have to increase for BTC to find new momentum, which it did. He said before the rally:

“We haven't had significant Coinbase outflows since $23k, tokens transferred is decreasing, and the fund flow ratio for all exchanges is increasing. Still possible that institutional investors would join anytime soon, but we might face a correction if it continues like this.”

As Bitcoin neared $29,500, Coinbase outflows began to spike. Ki said that they are possible over-the-counter (OTC) deals, which are typically bullish for BTC and exemplifies a wider trend of dwindling BTC reserves on exchanges.

At the time of publication, the entire market valuation of all 7,500+ digital assets is near $800 billion and steadily inching toward $1 trillion.