Since March 2020’s2020’s crash this week, Bitcoin and other altcoins have faced a sharp sell-off pressure. The sharp selling-off pressure of the leading crypto token this week is stoking fresh questions about the crypto surge’s sustainability. Besides Bitcoin, the prices of several other altcoins have also tumbled by more than 14%. However, on Friday, we observed that the token designed by Satoshi Nakamoto was steady, holding its position at a price level of $31,000. According to several commentators in the cryptosphere, a sustained fall below the price level of $30k could indicate more losses.
Many are speculative regarding the performance of Bitcoin
Earlier this month, the token’s surge to create new ATH embodied the adoption risk in the financial markets flooded with stimulus. In the cryptosphere, many argue that the flagship crypto token is getting mainstream investment as a barrier against the US dollar’s inflation and weakness. On the other hand, many in the space are still speculative regarding Bitcoin, as the token has more than tripled its value since earlier last year. According to the skeptics, among several crypto mysteries, responsible for the recent rally of the token is also the one.
Who is responsible for the recent price rally?
Many big entities started to enter the market prior to the rally, which is also a reason behind the surge. For example, Grayscale, a famous Bitcoin trust, has also faced a total inflow of more than $3 billion in Q4 2020. On the other side, last week, BlackRock also stepped into the cryptosphere for the first time. According to BlackRock, the cash-settled in the most famous crypto-token are assets that two funds were permitted to buy.
Where could be the next journey of BTC?
According to Jeffrey Halley, a senior market analyst at Oanda Asia Pacific, in such a zone where there is lack of clarity in tradeable versus investible, a 10% day range is a mere flesh wound to Bitcoin. He also mentioned that if today the token is being traded at the price level of $31,000, tomorrow it can quickly rise towards $35k or fall through $30k towards the national test support at $27k.
