Bitcoin’s volatility has been on full display in the last week with the last twenty four hours being very interesting. The early trading hours of January 14 saw BTC regain a market cap of over 1 Trillion having reached $40,099 according to TradingView, only for the price to retrace back to $39,500 just hours later.
Despite the considerable drop, the current drawdown is mild compared to the recent drop that saw BTC tumble from $40,000 to around $33,000. According to a lot of traders, $40,000 appears to be an important price that if breached strongly could see a rally to $45,000.
Current driven by institutions
According to eToro’s Guy Hirsch, the current BTC upswing can be attributed to institutional investors. The eToro CEO can see a new all-time high being achieved soon as well. According to Hirsch; it “wouldn’t be a surprise to see a new all-time high during or even before this coming weekend.”
With panic sells being seen over the last week, the eToro boss says that institutional money never left the scene. Hirsch made his opinion clear that institutional investors were to thank for BTC’s recent price milestones “The smart money never stopped allocating to Bitcoin even as the late-stage retail traders that helped enable the last rally to push above $40,000 were largely shaken out. Now momentum is clearly bullish again, and price action is reflecting this sentiment.”
Institutional investors never left
With the recent price volatility giving retail investors the chills, institutional investors seem unperturbed. Seasoned institutions having been buying the dip as the transfer of coins went from scared hands to firm hands. According to Denis Vinokourov, head of research at Bequant, BTC is not the only token getting institutional attention. The research boss said BTC was just one of the coins being looked at; “Open interest on Bitcoin futures may be on a relentless surge higher, but this did not prevent capital from also flowing into altcoins and relevant derivatives products”.
If Vinokourov is to be believed, then a focus on only BTC and ETH could be a mistake. Numerous other coins are out there showing immense promise.
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