With Bitcoin current pullback, experienced traders are said to be taking advantage and accumulating in accordance with the price movements.
After Bitcoin rallied to trade around its all-time high in the past few weeks, its market price has shed more than $1000 in 24 hours to trade around $17,872.50 according to the data provided by CoinGecko. As a result, the asset is down approximately 10% from its all-time high. However, Bitcoin (BTC) price is up approximately 15.4% in the past 30 days and over 138% in the past one year.
At the time of writing, BTC is trading at $18,236.
The drop in BTC price has affected almost all top digital assets including Ethereum, XRP, BCH, and LTC that dropped 6.8%, 12.1%, 6.4%, and 7.4% respectively according to CoinGecko.
Bitcoin (BTC) Price and Market Outlook
As Bitcoin (BTC) price is near its all-time high, huge transactions have been noted as whales deposit their coins to different exchanges. Apparently, they are preparing to easily trade their coins as investors anticipate more volatility in the near future according to Ki Young Ju, CEO of CryptoQuant.
“When it comes to short-term price prediction, I think the most important data is supply and demand”, said Ki Young Ju, CEO of CryptoQuant. “I think this plummet was started from bitcoin…whales who wanted to keep their bitcoin on exchanges making them readily available for sell orders.”
Bitcoin market price is still termed as highly volatile since it can move up to 10% or more in a day. However, the volatility is expected to decline as more institutional investors flock into the crypto industry and the market cap scales higher by the day.
At the time of writing, Bitcoin had a market capitalization of $331,775,907,387, thus a market dominance of approximately 62%. Notably, Bitcoin’s daily trading volume has significantly improved during the past three months despite having dropped in the past few weeks. Data by CoinGecko indicates that in the past 24 hours Bitcoin had a trading volume of $30,652,841,738.
With Bitcoin price current pullback, experienced traders are said to be taking advantage and accumulating in accordance with the price action. However, the volatility is not all pleasing for some investors, particularly short term and inexperienced traders.
Lucas Huang, head of growth at decentralized exchange Tokenlon, noted that from a retail trading perspective, “an 80% increase in bitcoin price over only two months might be a profit too tempting not to take.”
Notably, institutional investors led by Grayscale continue accumulating more digital assets. Whereby the latest update from grayscale indicates its Bitcoin Trust stands at over $10 billion. Mind you, the total assets under Grayscale management is currently at approximately $12 billion.
Recently, Grayscale sponsored an advertisement on Bitcoin against Gold. A clear indication that institutional investors are moving into the crypto industry that has higher returns in comparison to gold.
next