Seasonal Correction? Institutions and Retails Still Purchasing Ether and Bitcoin
The current cryptocurrency market is witnessing turbulences as asset value goes up and down unpredictably. As much as some investors try to remain positive, it is with no doubt that the recent tumbles have sent shockwaves to crypto investors across different regions. BTC achieved its highest price, $65,000 this year. Unfortunately, a correction followed to drop the coin’s value to $47,000.
However, Bitcoin gained its value trading at $60,000 in the first week of May. Here is where the nightmare began. BTC witnessed drastic drops, a 54% decline. BTC price declined to $30, 000, the lowest mark after many months.
For now, Bitcoin prices range from $33,500 to $42,500.
Although this has left crypto enthusiasts panicking, some investors have varying views. For instance, Mike Alfred forecasts that BTC will hit over $100k by this year’s ending.
Ether, on the other hand, dropped to $19,000, a 55% plunge. Tetranode, an ETH investor, said that the fluctuations in the Ethereum network are a seasonal correction.
The expert investor referred to 2017, where ETH corrected to $135 from $420, a 67.8% drop, only to hit $1,420 ATH months later. According to Alfred, EIP-1559 will promote Ether’s value, and the Merging would push the prices further to a minimum of $10,000. Is that possible?
Chainalysis data indicates that investors have used around $410 billion to purchase BTC during the anticipated bullish market.
Traditional finance individuals are investing in cryptocurrencies, purchasing the dips.
Different crypto enthusiasts suggest that BTC will still climb new heights this year as retailers and institutions venture into the crypto space.
For now, you will have to agree that institutions are investing in Bitcoin. For instance, yesterday’s OTC desks’ data indicates the biggest outflow. That means they have a high number of institutional purchases than in the past four months. It undeniable that institutions are buying the dip at the moment.
Kyle Davis, a Singapore finance official, told Bloomberg that the system wiped out individuals who borrow funds to invest. Keep in mind that his company bought more ETH and BTC in this sell-off.
Do you think that the crypto market is experiencing a seasonal correction? Remember, institutions and retails are still purchasing BTC and ETH.
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