Investors take advantage of buying Bitcoin at a level below $9,000
Bitcoin continues to be anchored in the $9,000/9,500 range. Even the news about the hacking of some major Twitter accounts linked to a Bitcoins scam hasn't been able to hurt the digital currency price. "Despite a brief period of flirting with falling below $9,000. It seems that the fundamentals simply don't support this price. Perhaps investors are seizing the opportunity to buy bitcoin at a level below $9,000, hence the inability of the currency to stay there for a long period of time. Or rather, more than a few hours. From the perspective of the underlying chain metrics, $9,000 would make Bitcoin undervalued. If you look at the hash rate that is at an all-time high, it is clear why bitcoin has not gone lower," says eToro analyst Simon Peters.
Will the institutional investor drive the next milestone in crypto market capitalization?
On the other hand, the role that institutional investors will play in the future of bitcoin and the crypto sector is critical. Grayscale Investments has attracted $900 million of inflows in its various strategies, 85% of which came from institutional investors. The crypto active sector currently has a total market capitalization of $274 billion, according to CoinMarketCap, "What is going to push this figure up to heights of $500 billion, or even $1 billion? For me, it has to be from the institutional investors. Assuming that bitcoin's dominance doesn't drop and stays around 60%, an overall market limit of 1tn would only need to see bitcoin reach $33,000. In my opinion, it's not completely off-limits to what's possible," says Peters.
Posted Using LeoFinance