What Can Be The Worst Bitcoin Price Expected, If It Fails - Report.
2021-03-11 | Robin Williams
Bitcoin [
BTC] has often traded
sort of a risky asset over the past few weeks - selling off
alongside United States stocks as bond yields rose, typically in response to nagging worries the Federal Reserve System might step in to tighten monetary policy prior to previously signaled.
Another analysis
of data extracted from the Bitcoin blockchain suggests
the danger of a steep sell-off might be capped on the downside by buyers who appear to enter the market whenever prices fall to about $48k.
There
are not any signs that such a sell-off is brewing, with bitcoin’s price rising Wednesday for a 6th straight day to a two-week high of around $57k. But the new analysis, by the South Korean blockchain-tracking firm CryptoQuant, might give traders comfort that prices aren’t likely to revisit the end-of-last year level of around $29k anytime soon.
“Speculative guess, but institutions would buy more if
the worth is falling,” Ki-Young Ju, CryptoQuant’s CEO, explained.
In line with CryptoQuant, dips in bitcoin prices to about $48k over the past month coincided with unusually large withdrawals from wallet addresses linked to the crypto exchange Coinbase’s Coinbase Pro segment:
Those outflows “might be institutional deals through Coinbase’s OTC [Over-the-Counter] service or Coinbase prime,” Ki added. The implication is that the institutional investors
could be moving their bitcoins off Coinbase Pro into so-called “cold wallets,” typically as
they need little intention of selling anytime soon.
So far, $48k appears to be
a good price.
Supported a price of $56k, investors are presently sitting on returns of roughly 16%.
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