Bitcoin is Bearish Until Institutions Flow Back Says Analyst
The Bitcoin price will remain bearish until after high net-worth investors and institutions channel their millions to the digital gold. This is the position of CryptoQuant CEO, Ki-Young Ju, who took to Twitter, expressing his position and explaining why he was bearish on the most valuable digital asset. He says the BTC price will remain in red until after Coinbase Premium begins to rise, traders move BTC out from exchanges, and institutions flow back. As long as these don't change in the next few weeks, BTC/USD prices may continue to print lower.
Analysts often point to institutions and their interest in Bitcoin as the sole reason why prices shot up to over $41.7k in early January. When prices rose, the Coinbase Premium also rose, signaling the demand level in the United States, whose participants are mostly whales, keen on purchasing the digital asset. This premium exists because of the USD-USDT differential. Whenever prices rally, BTC often trades higher than in Binance and other USDT-supporting exchanges. With shrinking BTC prices, there appear to be traders moving their coins to exchanges, supplementing the effects of miners and whales in Asia who have been dumping their stash at spot rates. Accordingly, until after the Coinbase Premium widens, whales move their coins from exchanges, and institutions flow back, Ki opines, the BTC price will continue to disintegrate. Regardless of his view, Bitcoin is still a retailer's field. Their will can't be discounted considering their involvement and pump of BTC prices in late 2017.
Impact on the BTC Price:
Neutral. Coins are moved in and out of exchanges all the time, and even with the deep pockets of high net-worth investors, crypto remains a retailer's court. Technically, how BTC/USD reacts at $30k and $42k could determine the medium-term trajectory affecting investors' sentiment.
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