- The Bitcoin price has recovered after yesterday’s crash, but is still showing extremely high volatility.
- More heavyweights like Three Arrows Capital and SkyBridge will invest billions more USD in Bitcoin.
Yesterday, the Bitcoin price experienced the sharpest drop since “Black Thursday” in March, from over $5,000 to $27,700 in the meantime. However, Bitcoin was able to recover a short time later and is currently down 4.05% over the last 24 hours. At the time of writing, BTC stood at $31,363. The market capitalization has fallen to $577 billion.
As Cantering Clark points out, Bitcoin is currently showing high volatility that traders could benefit from in the coming weeks. Veteran trader Cantering Clark shared a chart on Twitter that shows the Bitcoin price could likely range between $27,700 and just under $35,000 in January.
Bitcoin's playground for the next month+ ? pic.twitter.com/oEBnPpeRhg
— Cantering Clark (@CanteringClark) January 5, 2021
“Byzantine General” is also bullish on Bitcoin in the long term. However, in his opinion, BTC will trade in a narrow price range with high volatility in the coming weeks. It could be noticeable that many altcoins do not show any upward movement, so soon the altcoin season will start, which will be led by Ethereum, the analyst said.
Bitcoin is moving up, but altcoins aren't tanking vs BTC.
— Byzantine General (@ByzGeneral) January 5, 2021
Meanwhile,trader“CRYPTO₿IRB” states that another major correction could be ahead if Bitcoin fails to rise above 33,800. If the bulls fail to regain this level, the next price target of $40,000 would be a long way off for now. Regardless of this, he also sees the current correction as healthy.
Just dropped my free market report to help you decide the scenarios for $BTC. If 33.8k+ supply is reclaimed by bulls, then correction concept may get invalidated, and we see 40k+ fast. Invalidation plays are much more profitable than regular swings. Read👉https://t.co/ECwH0QFcJw pic.twitter.com/MXW5pzo8gS
— CRYPTO₿IRB (@crypto_birb) January 5, 2021
Other industry experts are also predicting that an altcoin season could be just around the corner. Trader “SalsaTekila” states on Twitter that he would definitely not short Altcoins. Even if Bitcoin falls, Altcoins could rise in price given the very high Bitcoin dominance.
Bitcoin dominance is very high, and bitcoin market capitalization at never seen heights. I would stay away from shorting any $ALTS. Even if bitcoin drops, they can pump 100's of percent, so the R:R is skewed against beras. https://t.co/zq0xetu5M5
— SalsaTekila (@SalsaTekila) January 5, 2021
More heavyweights enter the crypto market
Over the past year, numerous big players such as MicroStrategy, MassMutual, Guggenheim Funds and Ruffer Investments have made a splash by investing several million USD in Bitcoin and igniting institutional interest in Bitcoin. This trend could continue, as is already evident in the first few weeks of the year.
Yesterday, it was announced that Three Arrows Capital, a Singapore-based hedge fund, just like MicroStrategy, is investing $1 billion in Bitcoin. The hedge fund does not own the Bitcoins itself, but has used Grayscale’s services and bought 36,969 Bitcoins or 38,888,888 GBTC (Bitcoin units from the Grayscale Bitcoin Trust) through it.
— Kyle Davies (@kyled116) January 4, 2021
In addition, Skybridge Capital, an investment fund, confirmed the official launch of its new Bitcoin fund yesterday. Already, more than $300 million has been poured into the fund. In addition, Bitwise’s capital under management in Bitcoin has also surged. In a press release issued yesterday, the company said that capital under management in Bitcoin has increased from $100 million in early October to $500 million, and demand has exploded in recent weeks. Hunter Horsley, CEO of Bitwise said:
The speed at which professional investors are currently getting into cryptocurrencies is remarkable.