Bitcoin: BTC to make 'further gains' as investors HOLD currency

Bitcoin ‘not seen as a currency for transactions’ says expert

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Bitcoin was swept up in the cryptocurrency chaos of 2021 alongside most other tokens, having fallen into a deep trough in July which sunk its value by more than half what it was a few months earlier. The coin has since embarked on a slow path to recovery, now middling out around $30,000. But experts are deliberating whether it will fall or fly from its new perch.

They evaluate confidence in the token via investor activity, which is either bullish or bearish.

One analyst, Alexandra Clark, a Sales Trader at UK-based digital asset broker GlobalBlock, believes she has encountered some encouraging movement.

She revealed interest in “long positions”, which indicate when investors are holding on to tokens, have reached an “all-time high”.

Investors are currently holding $165.7 million in Bitcoin.

READ MORE: Top crypto investments of the last year

Bitcoin BTC price prediction cryptocurrency market evg

Bitcoin: BTC to make ‘further gains’ as investors HOLD currency (Image: GETTY)

Bitcoin: Cryptocurrency

Bitcoin: Cryptocurrency investors are currently holding coins more than shorting them (Image: GETTY)

These investors include Bitcoin “whales” who exert influence over the cryptocurrency market equipped with excessive capital.

Whales have crypto wallets worth $50 million in the currency, and they increased holdings between June and August.

Ms Clark said software firm MicroStrategy is among whales that have grown their Bitcoin portfolio and now holds more than 100,000, equalling roughly $3 billion.

On the other hand, “short” positions, which indicate when investors buy and sell currencies ahead of a perceived drop, have fallen.

Bitcoin: Bitcoin

Bitcoin: Bitcoin’s latest performance compared to other investing options (Image: COINBASE)

Ms Clark said the current short position has held at $74.1 million after falling “dramatically”.

As shorts decline, token volume has started to make a “crucial” recovery.

At present, the 24-hour volume has settled around $37,119,548,421.

Cryptocurrencies with higher volumes tend to have fairer prices without distortions.

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Bitcoin: Ethereum

Bitcoin: Ethereum is also looking up, and ready to break records, according to analysis (Image: GETTY)

Ms Clark’s analysis suggests investors are becoming more confident in Bitcoin.

Over time, currency prices tend to stay stable or increase when they have a “bullish” market behind them.

Alongside Bitcoin, Ms Clark said Ethereum is also due a positive run, and could eventually reach an “all-time high”.

She said: “Ethereum’s on-chain activity is bullish, indicating the second leg of the bull run is close.”

“The recent spike in NFT activity has prompted a rise in transaction volume and active addresses on the Ethereum network, as well as a deflationary supply.

“Owing to NFT activity, Ethereum fees and the amount of ETH being burnt has increased significantly meaning, at times, more ETH is being burnt than issued.

“As a result, for the first time ever, Ethereum’s daily issuance fell below that of Bitcoin.

“After surpassing $3,400, a psychologically important level, Ethereum has one last resistance barrier at the $4,078 level, where over 1.5 million addresses purchased Ether before it rallies to a new all-time high.”

Express.co.uk does not give financial advice. The journalists who worked on this article do not own cryptocurrency.

Roy Walsh

Roy Walsh

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