Bitcoin has just gained its momentum back last week after yesterday’s daily candlestick showed a price gain to around $71,000.
However, the market continues to go back down again which creates a new consolidation zone that makes investors and traders feel a bit worried.
Bitcoin Back to $71,000
Bitcoin has just successfully climbed back up to its previous high zone of around $71,000 which happened today before the new daily candlestick opened.
The price gain triggered a confirmation to the new consolidation zone between the $69,000 mark and the $71,000 which has been created since last week.
Currently the market seems unstable as the market has just opened and Mondays usually give out huge uncertainty, hence why the market is currently going down.
There is also some news that might trigger more volatility going forward, which comes from the United States Government and Central Bank.
On the 3rd of April, 2024 Jerome Powell, the Head of the US Central Bank will give a speech regarding the current economic conditions of the United States and how the policy will be rolled out in the second quarter of 2024.
Another news to look out for is the Non Farm Payroll data publication which occurs at the same time as the publication of the unemployment data. Both will occur on the 5th of April, 2024, so expect volatility going ahead into this week.
However, looking at the overall sentiment of Bitcoin, the asset currently remains positive because of two reasons.
The first one is the fact that the market is heading into a new month, which is April. According to historical data, April is usually bullish for Bitcoin before going down in May which is why traders and investors are expecting a price increase in the next couple of weeks.
The second one is the fact that institutional investors are back buying again after being in the negative on its netflow, according to the volume data of Bitcoin Spot ETFs.
The highest transaction volume is still held by BlackRock, which reportedly had more than 250,000 BTC in its holdings.
Larry Fink Bullish on Bitcoin
BlackRock has been one of the most influential institutional investors in the financial market which means that the current sentiment of BlackRock towards Bitcoin might be one of the key reasons why Bitcoin will go into the next bull market.
BlackRock’s CEO, Larry Fink, went live on Fox Business after the surge of buying volume happened where he stated that he was surprised to see how well IBIT is doing.
The interviewer asked Larry Fink if he expected “BlackRock’s Bitcoin Spot ETF to do good, but not this good” in which he replied “Yes”.
This shows how much he has changed his perspective on Bitcoin from being bearish and non supportive of it to now saying on live television that he is bullish on Bitcoin.
Larry Fink’s statement could mean that BlackRock might have more Bitcoin in their wallet but does not publicly disclose it to the market as the data available are only Bitcoin that was gathered from institutional investors buying Bitcoin.
Knowing the history of BlackRock and how the company influenced the world, it might be possible that BlackRock will be one of the main buyers that pushed crypto into the next bull market.
Overall, the long term trend of Bitcoin seems to be positive, especially with institutional investors like BlackRock behind it.
But note that volatility is not out of the question yet as there might be some occurring heading into the next Bitcoin Halving.
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