Buyers returned to the Bitcoin market (BTC), finding interim upside opportunities as the price rallied to nearly $40,000 on Feb. 25, gaining 16% in less than 24 hours.
Investors Increase Bitcoin Holdings
The number of Bitcoin addresses with a balance greater than 0.01 BTC (~$400) has reached a record high of 9.51 million, the latest data from CoinMetrics shows. In the meantime, the number of addresses holding at least 0.1 BTC (~$3,850) also reached 3.34 million for the first time ever.
Overall, the Bitcoin network added just over 24,500 addresses with a non-zero balance on Thursday, coinciding with choppy price movements for BTC, from around $37,200 to below $34,500, followed by a rally to $40,000.
Data resource Ecoinometrics divided the addresses into two groups: one holding less than 1 BTC and the other holding between 1,000 BTC and 10,000 BTC, noting that both groups have been “buying the Bitcoin crash,” said.
“It’s probably a smart move if you have a long-term investment horizon.”
As the Ukraine crisis unfolds…
Prospects for higher inflation may also be rising with the Ukraine-Russia conflict leading to higher global commodity prices despite the US Federal Reserve preparing to tighten rates. policies next month.
But Mohamed El-Erian, Allianz’s top economic adviser, said central bank officials would not go ahead with their aggressive rate-hike plans amid worsening geopolitical prospects.
“This completely removes the [aumento de la tasa] of 50 basic points”, told CNBCand I add:
“This eliminates the 8-9 hikes that were being talked about for this year. I don’t think the US economy can accommodate such a monetary policy slowdown. It means the Fed is going to have to be even more careful and tolerate inflation.” “.
GOLDMAN SACHS: THINK GEOPOLITICAL UNCERTAINTY FURTHER LOWERS THE ODDS OF A 50 BPS HIKE IN MARCH
— *Walter Bloomberg (@DeItaone) February 24, 2022
GOLDMAN SACHS: THINKS GEOPOLITICAL UNCERTAINTY FURTHER REDUCES THE CHANCES OF A 50 PBS HIGH IN MARCH
Michael Saylor, CEO of MicroStrategy, commented on El-Erian’s Fed outlook, adding that the ongoing conflict between Ukraine and Russia could lead to inflation and “make Bitcoin compelling.”
Saylor’s firm has more than 125,000 BTC worth approximately $4.84 billion in its treasury, according to BitcoinTreasury.
Wars create inflation, crypto commerce, and make #bitcoin compelling. pic.twitter.com/YksI21FcXS
—Michael Saylor⚡️ (@saylor) February 24, 2022
Wars create inflation, cripple trade and make #bitcoin attractive.
Bitcoin below $30,000 next?
Despite Saylor’s bullish outlook, which came after Bitcoin’s intraday bounce towards $40,000, the market’s Fear and Greed Index score turned out to be 27, showing unease among short-term investors/traders.
Nick, an analyst at Ecoinometrics, also noted that Bitcoin price could see a price correction below $30,000 despite having a strong long-term bullish outlook.
The reason cited is the imbalance between bearish and bullish positions in the Chicago Mercantile Exchange (CME) Bitcoin options market, biased more towards the former.
“CME Bitcoin Options Market Puts to Calls Ratio Stands at Three Puts for Every Call”, wrote in a report published on February 23, adding that “50% of put options are on strike” are now below $30,000.
“That gives you an idea of what the market expects in the short term.”
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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