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Tuesday, August 9, 2022

Bitcoin Declined To $26K, However, Traders Remain Unbothered

Few traders remain unbothered by the volatility of Bitcoin on Tuesday with the most popular cryptocurrency in terms of market capitalization dropping to the level of $26,000 after its 1st trades over $28k on Sunday.

Several market participants remain convinced that institutional and retail investors will help push the price of Bitcoin higher following the lull of the holiday. With the activity of institutional trading being very limited in the last days of this year, many analysts and traders told CoinDesk that the current price movement will be driven largely by the retail investors.

Jiang On The Strong Rally Of Bitcoin

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Mable Jiang, Principal, Multicoin Capital, hedge crypto fund, told CoinDesk that the whole situation of the past week is quite unusual because it is the holiday season and during such a season, usually there is the liquidity crunch. The heat got driven by partially the strong rally of Bitcoin with the resurfacing of the retail interest inside the market, especially in China. Jiang has noticed some patterns in the current trading activity of the retail investors. Few of them tend to roll altcoins into ether and BTC. Others tend to look for coins that may outperform BTC potentially on returns for the upcoming months.

In the weekly commentary about markets in TradeBlock, on 28th December, the firm which specializes in analyzing cryptocurrencies wrote that the current highs for ether and BTC were largely driven by XRP outflows. The only 2 digital currencies declared as not being securities by the SEC are ether and Bitcoin. As the regulatory uncertainty will increase in the market of altcoins after the action of SEC against Ripple, traders clinched the opportunity of piling into more assets that are regulatory-certain like ether and BTC, while maintaining their exposure to cryptocurrencies in the middle of its strongest bull run ever in the history of the cryptocurrency sector.

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