Bank of America has released a report stating that support for Bitcoin's rally is increasing as personal wallet hoarding also rises.
According to the report, the number of active Bitcoin wallets has been steadily increasing since the start of the year, with a notable surge in the first quarter of 2023. This surge coincides with Bitcoin's rally from $40,000 to over $70,000, which occurred during the same period.
The report suggests that the increase in wallet hoarding may be a sign of growing confidence in Bitcoin's long-term prospects, as more investors see it as a reliable store of value and hedge against inflation.
The report also notes that institutional interest in Bitcoin remains strong, with major banks and investment firms continuing to invest in the cryptocurrency. This institutional support, combined with growing retail interest, is seen as a bullish sign for Bitcoin's future price performance.
However, the report also cautions that regulatory uncertainty and the potential for a crackdown on cryptocurrencies by governments could pose a risk to Bitcoin's long-term growth. It advises investors to exercise caution and diversify their portfolios to minimize risk.
Despite the potential risks, the report concludes that the outlook for Bitcoin remains positive, with growing support from both institutional and retail investors likely to drive its price higher in the coming years.
As of the time of writing, Bitcoin is trading at around $58,000, down from its recent high of over $70,000 but still up significantly from its price at the start of the year.