Bitcoin (BTC)’s tumble below $ 30,000 was short-lived as the best cryptocurrency found a new wave of support, including a $ 10 million ‘buy the dip’ moment from MicroStrategy.
Data from Cointelegraph Markets and TradingView show that the strong inflow helped BTC increase 4.92% to a daily high of $ 33,866.
As the Biden government is expected to pass massive stimulus packages to get the US economy back on track, talks on Bitcoin are starting to become a reserve currency.
Although the recent volatility of Bitcoin, according to some analysts, says that BTC is a cyclical asset rather than a hedge, recent price movements have attracted the attention of retail investors, who have generally shown renewed interest in cryptocurrencies.
Even the Bank of International Settlements has acknowledged that digital currencies could have been used and the organization has outlined plans to implement a range of key digital currency banking procedures this year.
Now that the Bitcoin fear index has shifted from ‘Extreme Greed’ to ‘Fear’, it seems that some investors are following the advice of Warren Buffet to ‘buy when there is blood on the street’.
Institutional investors are wary of future regulation
According to Chad Steinglass, head of CrossTower, the correction of Bitcoin may initially be caused by critical remarks from the US. Treasury Secretary Janet Yellen.
Prior to Yellen’s remarks, Bitcoin was a ‘consolidation after correction’ and was ‘between $ 34,000 and $ 38,000’ and traders were ‘waiting to see which side of the range would be challenged or broken.’
Steinglass further explains that Bitcoin’s next steps will be determined by the actions of institutional investors. He said:
‘$ 31,000 was a bag of strong support, so at least not everyone sells. We will have to wait to see if the wall remains standing, and if institutions still accumulate. If they do, the trend is likely to re-establish and continue. If they move to the sidelines and wait for more guidelines, their lack of buying flow will be felt thoroughly. ”
Altcoins bounces
Many of the best altcoins also recovered well from this week’s correction. Polkadot (DOT) rose 7.09% to a daily high of $ 18, while Chainlink (LINK) made a double-digit profit topping $ 22.31. Tezos (XTZ) also saw an increase in interest that increased the altcoin by 15% to $ 3.36.
The total market capitalization for cryptocurrencies now stands at $ 949.8 billion and Bitcoin’s dominance rate is 64.4%.