After Bitcoin (BTC) broke the psychological price of $ 50,000 and rose above the $ 52,000 level earlier this month, Bitcoin (BTC) has consolidated between the $ 40,000 and $ 44,000 levels. BTC hovered around $ 43,235 during intraday trading CoinMarketCap.
The leading cryptocurrency experienced a significant pullback that all at once caused a daily loss of $ 10,000.
Market analyst Lark Davis believes FUD (Fear, Uncertainty & Doubt) engulfed the BTC market based on the Fear and Greed Index. He explained:
“The Bitcoin Fear and Greed Index is still trending down, a lot of uncertainty in the market at the moment. FUD times are casual times. Still have my purchase orders for $ 38,000 and Bitcoin ether $ 2,500 just in case. “
Hence, uncertainty has invaded the Bitcoin market, but this provides a perfect opportunity for some investors to buy the dip.
Bitcoin’s drive to retest the $ 50,000 level has been hampered by factors such as China’s replay that all crypto-related transactions are illegal and a significant liquidity challenge for China Evergrande, a leading Asian real estate developer.
Bitcoin transaction volume is becoming parabolic
To to Kevin Rooke, a technology investor:
“Bitcoin’s daily transaction volume quietly reached an all-time high of $ 29 billion on Sunday. There have only been 5 days in history when the Bitcoin network settled more than $ 20 billion. 3 of these days were this week. “
Hence, the BTC transaction volume is growing exponentially, despite the fact that the FUD can be seen in the market. This was caused in part by transactions valued at more than $ 10 million, which remained at a record high.
Lex Moskovski, CIO of Moskovski Capital, noticed:
“Whales have moved a record amount of Bitcoin in the past two weeks. The total transfer volume of over 10 million US dollars in transactions has recently remained with ATH. It’s even higher than when the price was $ 55-60,000. “
Yann & Jan, the co-founders of on-chain metrics provider Glassnode, recently admitted that the high BTC transaction volumes observed continue to reflect the influx of big money.
Institutional investments have played a crucial role in Bitcoin’s journey to record prices. For example, large movements of money allowed the leading cryptocurrency to hit an all-time high (ATH) of $ 64.8,000 in mid-April.
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