Hold onto your hats, folks, because Bitcoin’s been on a wild ride! U.S. investors dove headfirst into the BTC pool over the weekend, all jazzed up about President Trump’s inauguration. But hold your horses, these bold moves might just set off some rollercoaster dips!
Over the past nine days, Bitcoin's been like a yo-yo, plummeting below $90,000 and then rocketing past $108,500. According to the crypto wizards at Bitfinex, this rebound was driven by a surge in demand, especially from U.S.-based exchanges. It's like Bitcoin had its own comeback tour, showing some serious muscle compared to the stock market. By the end of last week, it was flexing with a 10% rally, soaring over 18% from its lowest to highest point!
The drama started on January 13 when Bitcoin dipped to $89,300, causing a whirlwind of liquidations amounting to about $818 million. But as Trump’s big day neared, Bitcoin’s value started climbing like a rockstar, fueled by a mix of spot and institutional demand.
During this comeback, the market was buzzing with aggressive buying. This was evident in the Spot Cumulative Volume Delta (CVD) skyrocketing, indicating buyers were on a shopping spree, lifting prices and hinting at a potential upward swing for BTC. It was like a buying bonanza that had everyone buzzing!
“The bold moves from spot market buyers just as traditional markets were winding down back this up, with robust demand from both short-term and big-shot institutional investors,” Bitfinex shared. It seems like the U.S. crypto crowd has played a big part in keeping BTC as the star performer among risk assets since the U.S. election results were announced in November.
But hold onto your hats, because Bitfinex analysts warned of a catch: when the market sees such a buying frenzy, it takes a while for bids to catch up. This means BTC might hit a speed bump, especially if investors decide it’s time to “sell the news” after the inauguration.
Perpetual traders who snapped up BTC, banking on a pro-crypto vibe with Trump in the White House, might be eyeing profits soon, potentially sparking a market correction. BTC already retraced to the $101,000 mark after hitting a rock star high of $109,300 just before the big event. But fear not, short-term holders have set up a safety net around $89,438, making it tough for BTC to fall much lower.
Stay tuned, because Bitcoin’s story is far from over, and it’s bound to keep us all on the edge of our seats!
