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In the letter
- Bitcoin rose today in the wake of a decline earlier this week.
- Analysts say this may just be the norm.
Bitcoin is having a good day: after some turbulence earlier this week, prices have now risen by around 6% in the past 24 hours. The price sits at $ 17,684, up from $ 16,800 yesterday.
Bitcoin appeared to be on track to break its all-time high on Monday and Tuesday, but fell Wednesday night. Industry analysts said it Decrypt that the drop in prices had to do with market nervousness.
“The all-time high is a major psychological barrier – breaking it requires real momentum,” said Jason Deane, a Bitcoin analyst at the blockchain analytics firm. Quantum Economics.
What’s good for Bitcoin tends to be good for altcoins: XRP is more than $ 0.60 right nowand Stellar spiked earlier this week; it has risen nearly 100% in the past seven days. On November 23, XRP broke the $ 0.50 mark for the first time since 2018.
As for why Bitcoin’s price is rising, said Eric Wall, Chief Investment Officer for crypto investment firm Arcane Assets. Decrypt that may just be the norm. “It is quite common that it struggles to overcome a previous ATH, and experiences a decline instead,” he said.
Wall attributes the rise to “market psychology” rather than events like the recent OKEx withdrawals, or the maturity of approximately $ 1.3 billion in Bitcoin options.
“Withdrawals of OKex have simply been repressed since they were suspended. Regarding the expiration of options – it is very unusual for sudden mechanical effects on the market to have a lasting impact – if they go against the broader sentiment they are almost always absorbed by the market. , “He said.
He added that “as the bullish catalysts that have brought us this far are still very much present and in action, it is only a matter of time before the temporary selling pressure subsides and we continue our ascent.”
Dmitrii Ushakov, the CCO of Russian mining company BitRiver, suggested that the near-term rally could reflect Bitcoin’s institutional acceptance, he said. Decrypt that today’s hike “could be part of a bigger price hike as more institutions make cryptocurrencies [are] a reliable store of value and medium of exchange “.
Analysts have with chalk This year’s upside was led to large-scale investments by MicroStrategy, a technology company that put $ 425 million into Bitcoin in August and September, and Square, Twitter’s Jack Dorsey payment service, which invested $ 50 million in October. Since then, the price of Bitcoin has almost doubled.
The surge initiated by those infusions is still ongoing, overall: Bitcoin started the year at around $ 7,000, dropped to $ 4,000 in March, and has grown steadily since then, as momentum has grown quite significantly in the last weeks.
If it holds up, this week’s drop has the potential to remain a blip.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
