A crypto analyst at X is confident that Bitcoin bottom and is poised for big gains in the coming sessions. Interestingly, the bullish outlook depends on Bitcoin’s market capitalization retesting all-time highs to date.
Will BTC recover? Changing market dynamics
So far, the price of Bitcoin is hovering around 2021 highs in dollar terms, but it recently broke all-time highs, reaching around $73,800. This fluctuation is also reflected in its market value. It is currently at $1.25 trillion, down 5% in the last 24 hours.
Notably, it is at the same price level as 2021 when Bitcoin prices peaked, recording new all-time highs.
While optimism abounds and the trader expects sharper price expansions in the coming days, it is not immediately clear whether the currency will rise, aligning with this forecast. Bitcoin is volatile and has remained so despite changes in market dynamics.
At the same time, unlike in the past, Bitcoin prices are driven not only by retail forces but also by institutions. These institutions are regulated by the United States Securities and Exchange Commission (SEC), which also approved the spot Bitcoin exchange-traded fund (ETF).
This Bitcoin derivative product has been the main driving force over the past ten weeks. This results from price developments since its approval in mid-January 2024.
However, because BlackRock and Fidelity are regulated by the US SEC, unlike retailers, they cannot act as they wish. Considering the millions and billions of dollars at stake, your comments or assessments on the currency, now and in the future, can have a huge impact on sentiment.
Sentiment Is Damaged, BTC Faces Headwinds
The feeling was damaged when writing. Even with the decision by the United States Federal Reserve (Fed) to keep rates at 5.5%, the highest in 2023, increasing prices, there was no solid follow-through in price action. The coin remains stable below $70,000.
It is not yet known whether prices will rise over the weekend. However, for now, there are some hurdles to consider.
First, there has been a slowdown in spot BTC ETF inflows. At the same time, exits from the Grayscale Bitcoin Trust (GBTC) increased. Secondly, after a strong recovery from October 2023, a slowdown before the halving could cause the coin’s trend to decline.
DALLE Featured Image, Chart from TradingView
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