- Bitcoin remains vulnerable to volatility amid developments of a current regulatory crackdown and institutional participation.
- Bitcoin whales buying the dips and have accumulated $3.5 billion worth of BTC since the start of April.
After facing a crash under $26,000 last week, Bitcoin (BTC) has managed to make some good recovery post the FOMC meeting. As of press time, Bitcoin is trading 1.20% up at a price of $26,756 with a market cap of $519 billion.
While regulatory crackdowns have induced strong selling pressure on Bitcoin and the broader crypto market, institutions gave started showing a greater interest in the crypto space. The recent filing of the spot Bitcoin ETF application by BlackRock has made investors optimistic once again.
But market analysts have asked investors to maintain caution once again. Craig Erlam, a Senior Market Analyst with OANDA, said that Bitcoin still looks “vulnerable”. He added:
Bitcoin ended last week quite positively after dropping to three-month lows on Wednesday, but it continues to look vulnerable to further declines. The two-month trend is not in its favour, and the news flow isn’t exactly helping the situation either. It’s had a remarkable year and remains more than 50% higher, so it’s hardly a dire situation.
However, he adds that the recent downturn is just a correction phase and the overall bull market sentiment remains intact. But Erlam said that he would wait for improvements and clarity from the US SEC and other global regulators over their stand on digital assets.
Where’s Bitcoin Heading Next – $20,000 or $30,000?
Currently, the world’s largest cryptocurrency Bitcoin (BTC) has come out of the selling pressure and is currently inching up further to $27,000. The recent catalyst to the Bitcoin price movement on the upside is the news about institutional participation in crypto.
Last week, the world’s largest asset manager BlackRock filed for spot Bitcoin ETF with the US SEC despite the current regulatory crackdown. This news has provided some catalyst for the BTC price to move forward and curb the selling pressure. Besides, there’s also a rumor that Fidelity Investments is also planning to file for a spot Bitcoin ETF.
If these two financial giants manage to get through the regulatory hurdle, it would mean millions of dollars in institutional money flowing into Bitcoin. While Bitcoin has shown volatility over the past few weeks, whales have been accumulating on the other hand. On-chain data provider Santiment reports:
Bitcoin’s whales have been busy while the crowd watched prices dwindle these past two months. Now back above $27k once again, it’s far from coincidence that wallets holding 1K to 10K $BTC have accumulated a combined $3.5B since the first week of April.
furthermore, Santiment explains: “Bitcoin’s Age Consumed has spiked in the past 24 hours, indicating that stagnant addresses are beginning to circulate $BTC back into regular movement on the network.”.
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