• The US government’s economic measures are favoring the bitcoin price.
• The number of Bitcoin addresses that are at least $1 million is at an all-time high.

The price of Bitcoin remains at record levels. During the year, adoption has been the key factor, but in the short term, Bitcoin’s price action seems to be reacting to two major events with an epicenter in the United States. Both factors could be aligned for the continuation of the bullish trajectory.

At the time of publication, Bitcoin’s price stands at $22,946 with a gain of 0.98% in the last 24 hours. In the weekly and monthly charts, Bitcoin is recording gains of 25.59% and 29.94% respectively. The market cap is at a record of $426 billion.

Despite its gains, Bitcoin has seen two rejections at the $23,000 mark. According to one trader, high selling pressure above that resistance signals a local top for Bitcoin that could put the cryptocurrency in a consolidation phase. During 2020, Bitcoin has entered similar stages where the price gained momentum, then rose massively and consolidated afterwards. Therefore, the trader does not expect another price discovery until 2021.

Trader Michaël van de Poppe has pointed out that Bitcoin has seen a 500% increase from its March 2020 low. At that time, the start of economic measures by central banks around the world to mitigate the effects of Covid-19 was decided, benefiting assets used as a store of value. Since then, Bitcoin has been the biggest winner in this regard, outperforming gold.

Bitcoin on track to $50,000

The announcements by the U.S. Federal Reserves has been particularly bullish for BTC investors. On Wednesday, the institution has confirmed that it will maintain its economic support program. On the other hand, a Washington Post report has revealed that President Donald Trump has been pushing to increase the economic aid that U.S. citizens will receive.

The first check of $1,200 was sent as part of the stimulus package, and Trump wants the second check to be $2,000. Both measures will inevitably contribute to a further depreciation of the US dollar and further fuel the bullish scenario for Bitcoin.

If the 2020 pattern repeats itself next year, the stimulus package will lead to a crash in the dollar. Already this year, the world’s reserve currency has seen a depreciation of 7%. As a result, more and more institutions might allocate funds to Bitcoin. In this context, one trader stated the following while setting a price target for the cryptocurrency at $50,000:

A lot of crypto-unacquainted people in the world waking up and hearing the $BTC price news, realizing they need to take a second look. This is when the real FOMO rally begins.

Accordingly, research firm Glassnode indicates that the funding rate in the derivatives market is on the rise. BitMEX registers the highest funding rate with 1.04%. Only Bitfinex is on the negative, as the following graph shows. Whenever this metric is positive, it usually supports the case for a long term rally of BTC’s price.

Glassnode also reports that the number of Bitcoin millionaires has seen an unprecedented increase after the cryptocurrency reached its most recent all-time high. Bitcoin millionaires or addresses with $1 million are up 150% and increased to 66,540 addresses.

Recommended for you:

• Buy Bitcoin Guide
• Bitcoin Wallet Tutorial
• Check 24-hour Bitcoin Price
• More Bitcoin News
• What is Bitcoin?