Wed, Oct 05, 2022 @ 16:17 GMT
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Bitcoin is Lowering But Not Yet Falling

Market picture

Bitcoin is losing 3.7% in the past 24 hours, falling to $23.9K%. Ethereum is down 5.2% to $1870. Other top altcoins are down 2% (BNB) to 6.4% (Solana).

The total capitalisation of the crypto market, according to CoinMarketCap, fell 3.6% to $1.14 trillion overnight.

Bitcoin on Monday failed to claw its way above $25K, after which short-term buyers rushed to lock in profits and returned the price to the $24K area. The pressure on BTC was exerted by the rising US dollar amid weak data from China, indicating a slowdown in the economy.

However, so far, Bitcoin’s decline is more appropriately seen as a corrective pullback within an uptrend. It would only be appropriate to discuss a break in this trend if it moves below $22.5K-23.0K. Sluggish and uncertain growth at the first stages is typical after a strong sell-off that prevailed since last October.

News background

Notably, the positive dynamics of the crypto market last week coincided with a net $17 million outflow, the first net withdrawal in seven weeks, of which $21 million came from investments in BTC. At the same time, investments in bitcoin short funds increased by $2.6 million.

The Wall Street Journal reports that US pension funds remain optimistic about investing in cryptocurrencies, despite a significant pullback in prices and a wave of defaults by crypto companies.

Raul Pal — Real Vision CEO — believes that Ethereum remains highly attractive for investors, and interest in it will grow even more after the move to PoS. Michael Saylor, former head of MicroStrategy, called the company’s decision to buy bitcoin a good one. He said, BTC is not suitable for everyone, “you should invest for at least four years. Ideally, it’s an intergenerational transfer of wealth.”

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