Broker of the Week Oanda - Read Full Review

Free Top Brokers Comparison Service


Bitcoin Falls 5% Despite Continued Accumulation by Investors


Investors continuing to buy bitcoin didn’t stop the top cryptocurrency by market value from slipping by over $2,600 on Wednesday.

Bitcoin fell from $36,000 to $34,000 this morning (UTC time) and was last seen changing hands near $34,300, representing a 5% drop on the day, according to CoinDesk 20 data.

While the cryptocurrency is down, it’s still within a week-long narrowing price range, as seen on the chart below.

A move below the lower end of the triangle would expose support at $30,000. Strength in the Dollar Index (DXY), which tracks the greenback’s value against other major currencies, could trigger a bitcoin range breakdown. The DXY’s performance has had a big influence on bitcoin’s price since the March crash. At press time, the DXY is flat-lined near 90.50.

The odds, however, appear stacked against a notable price drop, as bitcoin investors remain undeterred by the bull market’s pause and continue to boost their holdings. 

The number of addresses holding at least 1,000 BTC, has risen from 2,407 to a new lifetime high of 2,438 in the past seven days, according to data source Glassnode. The rise does not necessarily imply the same growth in the number of investors, as a single person or entity can hold multiple addresses.

Meanwhile, the number of bitcoins locked up in accumulation addresses has gone up by 30,000 to 2,739,166 BTC in the past week. Accumulation addresses are those that have at least two incoming “non-dust” transfers and have never spent funds. Dust refers to insignificantly tiny amounts of the digital asset.

The metric does not include addresses belonging to miners and exchanges, and excludes addresses last active more than seven years ago to adjust for lost coins.

Lastly, Grayscale Bitcoin Trust (GBTC), the biggest publicly traded crypto investment trust, purchased a total of 16,244 BTC ($607 million) on Monday, sucking out significantly more supply from the market than miners had added.

Grayscale’s inflows aided the price rally from $15,000 to over $41,000 seen in the past three months and are pivotal for bull market continuation, according to JPMorgan. Grayscale is owned by Digital Currency Group, CoinDesk’s parent company.

It remains to be seen if persistent buying from large investors translates into a quick recovery. A breakout from the narrowing price range would imply a continuation of the bull run and open the doors for the psychological hurdle of $50,000.


Source link

We will be happy to hear your thoughts

      Leave a reply

      Trading foreign exchange on margin carries a HIGH LEVEL OF RISK, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose.

      Advertiser Disclosure: helps investors across the globe by spending over hours each month testing and researching online brokers.

      How do we make money? Our partners compensate us through paid advertising.

      While partners may pay to provide offers or be featured, e.g. exclusive offers, they cannot pay to alter our recommendations, advice, ratings, or any other content throughout the site.

      Furthermore, our content and research teams do not participate in any advertising planning nor are they permitted access to advertising campaign data.

      Disclaimer: It is our organization’s primary mission to provide reviews, commentary, and analysis that are unbiased and objective.

      While has some data verified by industry participants, it can vary from time to time.

      Operating as an online business, this site may be compensated through third-party advertisers.

      Our receipt of such compensation shall not be construed as an endorsement or recommendation by, nor shall it bias our reviews, analysis, and opinions.

      Best Forex Brokers Reviews
      Reset Password
      Compare items
      • Total (0)