Bitcoin Faces Selling Pressure After Rejection at $28,000
After facing rejection at $28,000 earlier this week, the world’s largest cryptocurrency Bitcoin (BTC) is currently trading 1.81% down at $27,094 with a market cap of $528 billion. Bitcoin has been relatively less volatile compared to altcoins during the broader market sell-off, allowing it to extend its crypto market share above 50%. Whales have continued to accumulate Bitcoin even during the sell-off, with purchases totaling around 20,000 BTC worth roughly $550 million since the beginning of October.
Institutional Inflows and Short Position Bolstering
Despite the selling pressure, Bitcoin has witnessed institutional inflows totaling $78 million in the last week alone. Of that amount, $43 million flowed into Bitcoin specifically. However, some investors took advantage of the recent price surge to bolster their short positions on Bitcoin, resulting in inflows of $1.2 million over the same timeframe. Analysts predict potential price volatility for Bitcoin in the coming months leading up to the halving season in mid-2024.
Potential Price Retrace and Hedge Against Geopolitical Risks
Crypto analyst Rekt Capital suggests that Bitcoin’s price may retrace to the low $20,000s before its next bull run. Meanwhile, top investor Paul Tudor Jones sees Bitcoin as a potential hedge against rising geopolitical tensions and escalating US government debt. Jones finds stock ownership less appealing due to these factors and instead considers Bitcoin and gold as attractive alternatives. In an interview with CNBC Squawk Box, Jones expressed his aim to allocate 5% of his assets to Bitcoin in 2021.
Hot Take: Bitcoin Remains Resilient Amid Market Volatility
Despite facing selling pressure and potential price volatility, Bitcoin has shown resilience in the market. Whales continue to accumulate, institutional inflows are strong, and top investors like Paul Tudor Jones view it as a hedge against geopolitical risks. While short-term price movements may occur, Bitcoin’s long-term potential remains intact. As always, it is essential to conduct thorough market research before investing in cryptocurrencies.
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