Bitcoin investors 'buy the dip' as BTC nears $40K, gaining 16% in less than 24 hours

2 years ago

Buyers returned to the Bitcoin (BTC) market, locating interim upside opportunities arsenic the terms rebounded to astir $40,000 connected Feb. 25, gaining 16% successful little than 24 hours.

Investors bulk up Bitcoin holdings

The fig of Bitcoin addresses with a equilibrium greater than 0.01 BTC (~$400) reached a grounds precocious of 9.51 million, the latest information from CoinMetrics shows. Meanwhile, the fig of addresses that clasp astatine slightest 0.1 BTC (~$3,850) besides reached 3.34 cardinal for the archetypal clip successful history.

On the whole, Bitcoin's web added a small implicit 24,500 addresses with a non-zero equilibrium connected Thursday, coinciding with BTC's choppy terms moves — from astir $37,200 to beneath $34,500, followed by a betterment toward $40,000.

Data assets Ecoinometrics divided the addresses into 2 groups: 1 that holds little than 1 BTC, and the different that holds anyplace betwixt 1,000 BTC and 10,000 BTC, noting that some groups person been "buying the Bitcoin dip," saying.

"Probably a astute determination if you person a agelong word concern horizon."

As Ukraine situation unfolds...

The prospects of higher ostentation whitethorn besides beryllium rising with the Ukraine-Russia struggle starring to higher commodity prices globally contempt the U.S. Federal Reserve's preparing to tighten policy adjacent month.

But Mohamed El-Erian, main economical advisor astatine Allianz, stated that the cardinal slope officials would not prosecute its assertive rate-hiking plans amid the worsening geopolitical outlook.

"This takes the 50 ground point [rate increase] wholly disconnected the table," helium told CNBC, adding:

"It takes the 8-9 hikes radical were talking astir for this twelvemonth disconnected the table. I don't deliberation the U.S. system could accommodate specified slamming of the brakes of monetary policy. It means the Fed is going to person to beryllium adjacent much cautious and tolerate inflation."

GOLDMAN SACHS: THINK GEOPOLITICAL UNCERTAINTY FURTHER LOWERS THE ODDS OF A 50 BPS HIKE IN MARCH

— *Walter Bloomberg (@DeItaone) February 24, 2022

Michael Saylor, the CEO of MicroStrategy, commented connected El-Erian's Fed outlook, adding that the ongoing Ukraine-Russia struggle could make ostentation and "make Bitcoin compelling."

Saylor's steadfast holds implicit 125,000 BTC worthy circa $4.84 cardinal successful its treasury, arsenic per Bitcoin Treasuries.

Wars make inflation, cripple commerce, and marque #bitcoin compelling. pic.twitter.com/YksI21FcXS

— Michael Saylor⚡️ (@saylor) February 24, 2022

Bitcoin beneath $30K next?

Despite Saylor's upside outlook, which appeared aft Bitcoin's intraday rebound towards $40,000, the market's Fear and Greed Index people came retired to beryllium 27, showing uneasiness among investors/traders for the adjacent term.

Nick, an expert astatine Ecoinometrics, besides noted that Bitcoin's terms could acquisition a terms correction beneath $30,000 contempt having a beardown upside outlook successful the agelong term.

The crushed cited is the imbalance betwixt bearish and bullish positions connected the Chicago Mercantile Exchange's (CME) Bitcoin options market, skewed much towards the former.

"The puts to calls ratio connected the CME Bitcoin options marketplace remains astatine 3 puts for each call," helium wrote successful a report published Feb. 23, adding that "50% of the puts are connected strikes" are present beneath $30,000.

"So that gives you an thought connected what the marketplace expects successful the abbreviated term."

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

View source