Bitcoin users and investors should cheer up. Bitcoin price has again touched a sky high of $42,000 as on January 8th. The price has surged by almost 9% in just three hours. Since a high premium was offered by Coinbase, many US buyers drove up the markets as they started accumulating Bitcoins. Bitcoins are receiving continuous selling pressure from Asian regions especially from South Korea.
After the rise in Bitcoin price to $42,000, it has again witnessed a decline of almost 7% within a time frame of 8-hours. The sell-off of Bitcoins coincided with whale activities in major bitcoin exchanges. Infact trading in Altcoin also saw a similar rising trend.
Bitcoin whales have been selling en masses since the starting of 2021. When the price of bitcoins first surpassed the mark of $40,000, large whales in the bitcoin market began to sell Bitcoins. Within a time frame of three hours, mega sales on the Binance platform sold off bitcoins 4-times more. Thus, this leads to extreme volatility in the market.
What’s next for Bitcoins?
At the present moment, the Bitcoin market is trying to make a balance between the whales taking the profit on their position and the new buyers in the market who are in a rush to accumulate all Bitcoins. There has been high volatility in the bitcoin market ever since the price of Bitcoin reached a high of $30,000. Due to the coming of high flow of capital into the bitcoin sector through Coinbase, it is expected that the upside momentum of bitcoins will be sustained in the upcoming future too.
When High net worth individuals try to purchase bitcoins, they try to move out the Bitcoin from the centralized exchanges due to security reasons. Thus, the outflow of bitcoins from Coinbase would mean that the Bitcoin will accumulate heavily in the United States.
Sentiments around bitcoin remain positive even if there is an upsurge in the price for the last three months. A chief investment officer at Arcane Research in a tweet said that Bitcoin can witness an even bigger surge in price.
At the current price of Bitcoins at $40,000, the market value of Bitcoins is valued at $740 billion. In the long term, it is anticipated that bitcoin’s value will surpass that of Gold in the coming future.
What are you waiting for? Brace for the impact and make an investment in Bitcoins.