Bitcoin price recovers marginally and is now trading at $ 55K.

Spread the love

 396 Interactions,  4 today

The last few weeks have been difficult for crypto speculators, as Bitcoin rates have continued to fall. Bitcoin has fallen 16 percent in a matter of weeks after reaching an all-time peak of $ 61,500, resulting in a loss of $ 100 billion in market capitalisation. The big cryptocurrency has shown signs of recovery, with Elon Musk’s tweet bringing the price back up to $ 56,000. This was insufficient, as Bitcoin began to fall, returning to $ 51,000 territory. After several days of discounts, bearish sentiment started to emerge; investors and speculators began to struggle, fearing that the correction was far from over.

bitcoin-price-is-reeling-from-a-strong-rejection-from-above-60000-rebound-slightly-at-55000

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price today rose 6%, rebounding back to $ 55,000

Today, the market breathed a sigh of relief as Bitcoin rose 6%, returning to $ 55,000. More specifically, selling pressure is set to ease when the record $6.4 billion in options expires earlier today. According to DeriBit info, Bitcoin price expectations remain higher in April than in March. Investors seem to be more positive than ever, with April 30 contracts displaying a deal/call ratio of 0.80 as of press time.

RECOMMENDED READ:  Satoshi purposely mined less Bitcoin than possible, new research claims

bitcoin-price-is-reeling-from-a-strong-rejection-from-above-60000-rebound-slightly-at-55000

Surprisingly, by the end of April, the majority of buyers had wagered more than $ 80,000 on Bitcoin. This strike price accounts for 12.6 percent of overall open interest (4842 out of 38283) and is the most commonly used call-making price. In the other hand of the transaction, the $ 50,000 transaction price accounts for 10.1 percent of all available positions.

At first sight, it seems that the derivatives market has been valued in terms of Bitcoin bullish optimism – at least for the time being. This is clearly subject to adjustment based on a variety of variables such as catalysts, financial prices, and legislation.

With Bitcoin’s latest price movement and intense uncertainty, several organisations that were previously involved may have been discarded. According to a CoinShares survey, institutional demand for Bitcoin investment products fell in the final weeks of March. In only one week, they have seen a roughly 60% reduction in institutional inflows.

RECOMMENDED READ:  Here’s Why Ethereum’s Consolidation Could Result in an Explosive Move to $480

Even so, after Bitcoin has recovered, institutional appetite is expected to increase again. Recently, one of New Zealand’s pension funds announced that Bitcoin accounted for 5% of their funding. Temasek, Singapore’s $ 306 billion sovereign wealth fund, also disclosed that it has been amassing digital currencies since 2018.

Goldman Sachs, a major investment firm, is still bullish on cryptocurrency, submitting an application to develop their own financial products that monitor Bitcoin. To summarise, the recent downturn in global capital flows is not a cause for concern in the long term. When Bitcoin’s price has stabilised, institutional demand is expected to grow again.

 

Leave a Reply

Contact Us