By
Godfrey Benjamin
May 10th, 2024
After a heavy bashing over the last weekend, Bitcoin and the crypto market showing marginal recovery.
On Sunday, November 25, the cryptocurrency took a massive hit with Bitcoin price sliding below $3600 levels. This was for the first time that the world’s largest cryptocurrency slipped below $4000 levels since September 2017. At the new 2018-low price-point, Bitcoin’s valuation also slipped below $65 billion.
However, Bitcoin has shown the good recovery in the last 24-hours. The Bitcoin price has finally surged past its sentimental barrier of $4000 with its valuation just crossing $70 billion. At the press time, Bitcoin (BTC) is trading 7.5% higher for $4038. This recovery brings at least a temporary relief to cryptocurrency investors facing the wrath of the bears since last 12 days.
Overall Cryptocurrency Market Recovers
Yesterday’s market crash pushed the crypto market valuations to below $120 billion, the lowest for 2018. Altcoins witnessed a much heavy sell-off in comparison to Bitcoin. Today’s market recovery shows a green wave hitting across the altcoins space as well. Almost all of the top-twenty cryptocurrencies have recover between 7-12%, at the press time.
The cryptocurrency market valuation has surged $10 billion and is currently at $130 billion. Still, after heavy and continuous selling in the last 15 days, the market lacks confidence on investors for a sharp pullback. It remains to be seen whether it’s a dead cat bounce or a real recovery.
Even before the Sunday market crash, Genesis Trading CEO Michael Moro predicted Bitcoin to bottom out at $3000 level. It means that Bitcoin price can slide another 25% from the existing levels. Talking to CNBC last Friday, Moro said:
“It’s really difficult. There are small levels of resistance, and we’ve seen the 4000 level get tested twice now in the last couple days, but I really don’t think there’s too much in the mid 3000s, so you won’t find much until you hit the 3k flat level.”
Are Institutional Players Accumulating?
The narrative about institutional players entering the crypto market is currently questionable. Retail investors do not see any signs of recovery, which has caused panic to strike hard. There have been past reports about big institutions as well as university endowment funds buying Bitcoins.
Well, all of this ain’t be false completely, but many senior experts still believe that big players are stacking more and more BTC. Jake Chervinsky, a senior lawyer at Kobre and Kim repeated the institutional narration.
Investors, with bitcoin trading under $4,000:
Retail: "should I sell and buy back lower? should I open a short? should I just give up? is it going to zero? was this whole crypto thing a scam after all?" 📉😱
Institutions: "please keep selling us cheap bitcoin. thank you." 😆💰
— Jake Chervinsky (@jchervinsky) November 25, 2018
When the crypto market has left us in this critical stage, it all depends on the individual grit whether to hold and sell. However, if we look into the surrounding space, we can see many big players joining the game. Intercontinental Exchange (ICE) and Fidelity Investments have already pledged to enter the crypto space. ICE will launch its Bakkt platform by January 2019 end and Fidelity will bring its custodial and storage solutions by the Q1 of 2019.
If things go right, we can probably see the first Bitcoin ETF hitting the market by March 2019 which further trigger the institutional rally.