As the first digital currency, Bitcoin remains steadfast, hovering above the $30,000 mark, despite a plea from market pundits for a downfall. Last week, this pioneer cryptocurrency, BTC, tickled a 12-month high of $31,468 and brought a fresh wave of optimism across market participants. Several theories were afoot that it might revisit the $28,000 support level. However, a sudden surge of interest among institutional investors, fueled by the sound market structure, helped keep Bitcoin’s head above water.
One cannot overlook the role of institutional investors when it comes to the sustainability of the cryptocurrency market. A clear example of the growing faith among the corporates is the clandestine purchase by MicroStrategy of a stupendous 12,333 BTC worth a staggering $347 million at about $28,136 per Bitcoin. This takes their total BTC balance to a whopping 152,333, valued around $4.5 billion. This move is a clear testament that Wall Street is warming up to the crypto market.
Such physical ETFs have been given a boost by companies such as Blackrock entering the market. This initiation among the biggest of institutional investors has set a new stage, piquing interest among long-term holders of BTC and stakeholders who until now had remained on the sidelines due to regulatory uncertainties.
The entry of investment behemoths such as Fidelity Investments and Ledger, running crypto-based platforms, further vindicates the growing acceptance of the crypto market among institutions. Whereas Fidelity backs EDX Markets, a crypto exchange for brokers and individual investors, Ledger has launched Ledger Enterprise TRADELINK, a service specifically focusing on institutional investors’ requirements.
Despite the hiccups witnessed after recent rejections from the 12-month high level, traders must stay vigilant as selling pressure intensifies. It would be wise to wait until Bitcoin price reaffirms a rebound from $30,000. However, it’s still early days to completely write off another rollback to dip back to the $28,000 level.
A silver lining for bulls could be the increase in the amount of money flowing into BTC markets compared to the outflow. This could potentially make it easier to push for a breakout to $38,000. Overall, Bitcoin needs to hold the fort above the critical support of $30,000 for an upward trend to sustain. However, it also needs to brace for challenges and possible turbulences from regulatory bodies such as US Securities and Exchange Commission (SEC).
Source: Coingape
