Bitcoin News

Investors Buying Bitcoin Within The Ongoing Dip – Official Report.

“Our desk has been a net purchaser over the past 2-3 days,” Greg Cipolaro, global head of research at NYDIG, a bitcoin-focused investment manager, outlined earlier on Monday in an email to subscribers.

Cipolaro revealed the comments after Bitcoin [BTC] tumbled from a record high above $64k, last week to as low as $51,541 USD earlier on Sunday. The leading cryptocurrency Bitcoin [BTC] is presently trading a price around $55.4k, at the reporting time.

Bitcoin’s price remains up 89% this year amid speculation that capital investors are employing the leading cryptocurrency as a hedge against inflation following trillions of dollars of COVID-19 outbreak-related economic stimulus over the past year by governments and central banks around the world.

“Institutional investors have had a buy-the-dip mentality within these risk-off events, suggesting increasing ease with handling bitcoin’s volatility,” added Cipolaro.

“We believe the basis explanation for the sell-off had to try so with investor positioning instead of fundamental news. Simply put, traders were overleveraged & positioned long, leading to forced liquidations.”

Cipolaro also revealed significant BTC spot price discounts on Binance exchange compared to Coinbase. “The difference in spot, which is typically very tight, reached nearly 3% at one point. To us, these data points are indicative of selling pressure in Asia instead of North America.”

Investors Buying Bitcoin Within The Ongoing Dip - Official Report.

Leave a Comment

Your email address will not be published. Required fields are marked *