The most popular crypto currency Bitcoin (BTC) has been under strong selling pressure after retracing from $28,000 at the start of the week. It currently, it is trading at $27,094, with a market value of $528 billion, and an 1.81 percentage reduction. Despite the selling pressure that has been affecting this market Bitcoin has outperformed other coins. Because of the whales who kept on accumulating strong even in the this week’s sales, the most popular cryptocurrency has managed to boost its share of the market for cryptocurrency to more than 50 percent.
Bitcoin Whales and Institutional Accumulation
Analyst in crypto Ali Martinez, closely followed by crypto investors, announced that whales have purchased approximately 20,000 BTC valued at $550million from the beginning of October.
Despite the pressure of selling, Bitcoin continued to attract institutional investors over the last week. For the second week in a row that included digital asset investment products have seen inflows of $78million. Particularly, BTC managed to take the majority of the money with an inflow totalling $43 million. But, a few investors considered the recent price hike as a chance to build their short-term positions in Bitcoin and resulted in an increase of $1.2 million for short positions in the same period.
Market analysts predict the volatility of Bitcoin’s price to rise in the next few months because the halving of block reward scheduled to happen around April of 2024 swiftly is getting closer. Analysts in the field of crypto Rekt Capital has warned investors of the possibility of Bitcoin being able to drop to $20,000 prior to beginning its next bull run.
Famous Investors Point towards Bitcoin as a hedge tool
With the growing geopolitical tensions and the ongoing conflict between Israel and Hamas Top investors have turned towards Bitcoin as a possible hedge instrument. Paul Tudor Jones, founder of a major hedge fund that is among the most affluent names around, voiced worries about factors like geopolitical risk and the growing burden of the US government, making stocks less appealing.
Jones stated Jones emphasized that Bitcoin as well as the gold-colored precious metal are appealing options for investment. Additionally Jones declared that he plans to dedicate 5percent of his assets towards BTC at the end of 2021.