The first cryptocurrency is once again showing its strength and once again attracting even more attention. After correcting to the $30K level, the cryptocurrency changed its trend very sharply and is once again storming the $40K per BTC level. What’s going on anyway?
What has actually been happening with bitcoin for a very long time. Most of the time, the bitcoin price is influenced by “whales” with a lot of free money and cryptocurrency already bought. The entire cryptocurrency market is approaching USD 1 trillion, which is negligible compared to the US stock market. This allows the big players to manipulate the price to some extent and do as they see fit.
There is now another bitcoin buying hype going on, both by small players and big players. In a month, the top 100 bitcoin wallets have shown bullish momentum. In total, about 350,000 new coins were added to these wallets. Quite an impressive amount at current exchange rates.
It is also worth noting that most of the top 100 bitcoin holders had almost no reaction to the recent correction, which once again confirms the possibility of some kind of collusion between them, as well as possible manipulation of the price in the future.
Once again we can conclude that bitcoin is completely unpredictable. If you have the gift of reading the minds of those people and companies who can drive the market, you can probably make a very good profit. Otherwise, the first cryptocurrency remains a mega-volatile instrument.
It is worth realising that when you buy a cryptocurrency you are not investing, you are just floating along with all the other bitcoin owners. Bitcoin is not a dividend stock, it is not a company that has a growth plan, and bitcoin cannot be touched like gold or the dollar.
Right now, the only way to predict the price of a cryptocurrency is to analyse investments in the crypto market. Since the start of the year, institutional funds have invested just $10 million in bitcoin, up from $1 billion in December. If the amount invested does not increase by the end of January, it is likely that bitcoin’s growth will be in doubt, as the big money would rather bide its time.
What’s in store for us today?
8.00 UK GDP for December
11.00 EU trade balance for November
14.30 US Retail Sales in December
16.00 US Consumer Sentiment Index for January from the University of Michigan
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