
Let’s talk web3, crypto, Metaverse, NFTs, CeDeFi, meme coins, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!
While the short-term Bitcoin prospects depict bearish sentiment, the mainstream adoption, which now includes nation-states, will fuel the next thrilling phase.
Bitcoin BTC $97 036 24h volatility: 1.0% Market cap: $1.92 T Vol. 24h: $31.80 B price closed Tuesday in a bearish mood after being rejected above $102K again in the past two days. The flagship coin slipped over 3% in the past 24 hours to trade about $97,672 on Wednesday, February 5, during the mid-London session. Following the heightened crypto volatility, more than $357 million was liquidated in the past 24 hours, with over $88 million involving BTC.
As a result, the short-term prospect of Bitcoin dropping was further amplified, as the BTC fear and greed index dropped from over 72% earlier this week, denoting extreme greed, to around 54% on Wednesday, suggesting neutral. According to on-chain data analysis from Santiment, Bitcoin’s daily active addresses dropped from over 790K on Tuesday to around 224k earlier today.
BlackRock Inc (NYSE: BLK), through its iShares Bitcoin Trust (IBIT), has continued to buy more BTCs, despite the short-term bearish outlook. The behemoth fund manager, with over $11 trillion in AUM, believes in Bitcoin’s ability to hedge against inflation and macroeconomic uncertainty.
BlackRock bought 2,520 Bitcoin
Only 450 were mined pic.twitter.com/PzhLFwC8hf
— Quinten | 048.eth (@QuintenFrancois) February 5, 2025
On Tuesday, BlackRock’s IBIT registered a net cash inflow of about $249 million, thus increasing its net assets to about $57 billion. Meanwhile, the net cash inflows to the US spot BTC ETFs on Tuesday were about $340 million, with none of the issuers registering net cash outflows.
Bitcoin price has been trading inside a horizontal channel in the last three months, in preparation for the thrilling phase of the 2025 macro bull run. The flagship coin, with a fully diluted valuation of about $1.94 trillion and a 24-hour average trading volume of about $64 billion, has, however, been trapped in a short-term correction towards the lower border of the horizontal channel.
After retesting a crucial support level above $91.5K, Bitcoin price has been showing more signs of another retest before rebounding in the near future. The short-term bearish sentiment will, however, be invalidated if Bitcoin price, in the four-hour time frame, consistently closes above the falling logarithmic trend and regains the 100 Moving Average (MA) as a support level again.
The mainstream adoption of Bitcoin, led by institutional investors, has now involved nation-states, led by the United States and El Salvador. As Coinspeaker explained, Bitcoin’s long-term prospects were bolstered after US President Donald Trump signed an Executive Order directing the creation of a sovereign wealth fund spearheaded by the Treasury and Commerce Departments.
Additionally, Trump’s crypto and AI Czar David Sacks announced in a press conference the commitment of the Trump administration to foster the mainstream adoption of digital assets through clear regulatory frameworks.
With around 3 million Bitcoins available in the free market, through centralized exchanges and mining processes, the rising demand from whale investors will trigger a large-scale rally akin to the 2017 cycle.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Let’s talk web3, crypto, Metaverse, NFTs, CeDeFi, meme coins, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!