‘Massive interest’ and ‘incredible returns’ – why some suddenly think now is a good time to buy Bitcoin amid $1 trillion crash
Bitcoin
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The bitcoin price, down around 70% from its all-time high, has struggled to hold above $20,000 per bitcoin as the market struggles with a brutal crypto winter – although there is still some positive news emerging.
Now a crypto exchange CEO has said he’s seeing “massive crypto interest” from institutional clients (following a BlackRock switch this month) while a closely watched bullish bitcoin trading signal has flashed this week.
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Bitcoin has fallen sharply this week, but bullish investors remain confident that the bitcoin price will … [+]
“A lot of institutional companies are looking to make their first move into crypto – there is massive crypto interest from our institutional clients,” said Bitstamp CEO Jean-Baptiste Graftieaux during an interview with Business2Community this week.
Earlier this month, BlackRock, the world’s largest asset manager with $10 trillion in assets under management, launched a spot bitcoin private trust, opening the bitcoin and crypto market to its US institutional clients. However, the bitcoin price has continued to decline since then, struggling to regain last year’s momentum in the face of the Federal Reserve’s fight to curb inflation with interest rate hikes and monetary tightening.
“In general, how long the crypto winter will last, it’s a little too early to say when and how,” Graftieaux said. “But what I personally feel is that we are in a more positive trend now compared to the last couple of months, although the climate is still very uncertain. In the coming quarters, we will probably see more positive indicators – maybe not a bull run, but with a certain positive development on the markets.”
Meanwhile, recent technical signals showing an increase in bitcoin’s mining hashrate – used to calculate the computational power used to create new bitcoin and secure the network after miners shut down their machines following bitcoin’s price crash earlier this year.
“Historically, these have been good times to allocate to bitcoin, with incredible returns,” Charles Edwards, founder of quantitative crypto fund Capriole Investments, told CNBC.
Edwards’ so-called hash band data has recently shown that bitcoin’s hash rate 30-day moving average has crossed back above the 60-day moving average at the same time as the 10-day moving average price of bitcoin is crossing over the 20-day moving average. Average price.
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The Bitcoin price crashed this week after Federal Reserve Chairman Jerome Powell signaled that the Fed will … [+]
Despite bitcoin’s mining hashrate rising over the past week, bitcoin prices have fallen in the wake of a speech by Federal Reserve Chairman Jerome Powell on Friday, in which he warned of “pain” ahead as the Fed struggles to taper inflation from 40-year high.
“Fed Chairman Jerome Powell’s speech … was perhaps a bit hawkish in that he mentioned that a ‘tight policy’ would be needed for some time and spoke against ‘premature’ loosening of policies,” Joe DiPasquale, managing director of hedge fund BitBull Capital , wrote in an email message. “However, given this, we remain cautious on any upward movement and maintain our stance of watching market reactions at key levels and look to rally around $20,000-$18,000 to start.”
