There was a brief period in mid-2020 when Bitcoin was rising along with gold to an extent crypto bulls were claiming that, like the yellow metal, it was a risk-off asset a hedge against inflation, economic turbulence and geopolitical unrest. Since then, it has looked increasingly like a risk-on asset, something that rises in value when investors are feeling confident and
Bitcoin’s drop to $42,000 obliterated its open interest and liquidated a large swath of leveraged traders, but analysts say OI resets typically provide great buying opportunities.
Market Update
The wider cryptocurrency market entered a period of consolidation on July 27 following Bitcoinâs (BTC) brief spike above $40,000 the day before that helped ignite a rally across the market and brought a renewed sense of optimism to the market.Â
Data from Cointelegraph Markets Pro and TradingView shows that a mid-day attempt by bulls to lift the price of BTC back above the $40,000 level was rejected resulting in a price pullback to $37,500.
BTC/USDT 4-hour chart. Source:
While Tuesday s price pullback may suggest that Monday s rally was simply a short squeeze, others point to the rising Grayscale Bitcoin Trust (GBTC) premium, which is now at the highest levels in months at -5.88%, suggesting that institutions are once again betting on more BTC price upside.Â
Bitcoin s Mid-$30,000 Struggle And $2 87 Billion Crypto Whale Spike forbes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forbes.com Daily Mail and Mail on Sunday newspapers.