Finance

The recovery in demand for risks gave bitcoin a chance to rebound

FxPro

Cryptocurrencies took advantage of the stock market rebound, locally offsetting the recent decline. If we look at it in a broader perspective, the coin manages to compensate for only part of the losses, but globally it is not possible to return to growth. Bitcoin has been adding almost 5% over the past day. Growth occurs when trading volumes increase, which is a positive signal. However, there are concerns that this positive trend will exhaust its potential already at current price levels around $32K.

Cryptocurrencies took advantage of the stock market rebound, locally offsetting the recent decline Cryptocurrencies took advantage of the stock market rebound, locally offsetting the recent decline

If this really happens, then we get a scenario of steady sales of cryptocurrencies when trying to grow.

However, if in the framework of the last cycle at the beginning of 2018, this led to the collapse of the crypto market and the beginning of the crypto winter, now the sentiment of the retail sector does not have a global impact on bitcoin. The rally to $65K was not set in motion by retail crypto enthusiasts, the price was driven by large capital. Of course, the rally was supported by the retail sector, but even the maximum level of panic of private investors is unlikely to lead to catastrophic consequences.

 

The obvious dependence of bitcoin on the decisions of large capital, which does not have any special feelings for digital currencies and pursues only the goals of maximum enrichment, sets up skepticism in assessing long-term potential. Previously, the crypto community was afraid of bitcoin’s dependence on the concentration of computing power in China. Now there are concerns about the large participation of large capital. Of course, when institutional investors buy, this is only welcome, since the price is rising, but sooner or later they will start selling.

The good news is that we can now observe a sluggish stage of asset accumulation. If you look at the news agenda, then large capital continues to increase its share of participation in the crypto sector. For example, the Rothschild Investment Corp fund, which increased by 5% the volume of its shares in BTC and ETH Grayscale trusts. Now this is a general trend, and it is very likely that we will still see the growth of bitcoin in the coming days or weeks, from where a new large-scale stage of the sale will begin with a potential target of $ 10 thousand, zeroing out all the rallies since October last year.