Key facts:
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The support at $45,000 gave way and bitcoin price sides near $42,500.
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Despite the recent correction, some analysts predict a long-term rebound.
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After reaching $48,000 at the end of March, the price of bitcoin turned back and stabilized around $46,000, the level at which it started on Monday, April 4. At that time the market was neutral, as reported by CriptoNoticias. at the beginning of the week.
In this state of the market, where there are no exaggerated bullish or bearish sentiments, investors were calm. However, as of Tuesday 5 sales of holders with more than 1,000 BTC began to increaseie the whales, which led to a downtrend. Currently, the price has stabilized around $42,500.
The bearish pressures also affect stocks, with which bitcoin shows a high correlation. For some analysts, the downward trend is associated with expectations of the next Fed meeting on May 4, in which it could announce additional interest rate hikesto try to contain inflation.
Institutional Bitcoin on the rise
From April 6 to 9, Miami held the Bitcoin Conference 2022, with extensive coverage of CriptoNoticias. Four providers of institutional investment plans, Genesis, Fidelity Digital Assets, Anchorage, and LMAX Digital discussed the progress of the institutional bitcoin market in recent years and the questions companies are asking who want to venture into investing in bitcoin.
The dollar weakens against bitcoin
Fiat currencies like the dollar and yen could take a backseat if bitcoin cements its role as the world’s reserve currency, according to several experts who analyzed the weakening of the main world currencies in the Conference 2022, as reported by CriptoNoticias. For the CEO of Marathon Holdings, Fred Thiel, bitcoin is already a reserve currency because it is not controlled by anyone.
Featured chart of the week
The graph below shows that the BTC held by the whales follows a decreasing trend, while the shrimp holdings, those holders with less than 1 BTC, have not stopped growing since June 2021.
A small recovery of whale holdings can be seen in recent years. If that trend continues, the price action could have an upward momentum. Whales are the only segment of holders that has not participated in the accumulation of the last days.
Cathie Woods reiterates $ 1 million prediction for bitcoin
The director of Ark Investment, Cathie Woods, is a strong defender of bitcoin and stated at Conference 2022 that it has great potential as an institutional store of value, to the point of ensuring that can reach the price of 1 million dollars.
The executive believes that, in the next 8 years, 2.5% of institutional assets will be assigned to bitcoin. She assures that, in the same way that real estate investments prevailed in the 1980s and emerging markets in the 1990s, in the next decade it will be the turn of bitcoin.
“We have a target price, by the year 2034, of more than $1 million per bitcoin,” Woods noted.
Bitcoin: more repurchased than shares of Apple and Tesla
The director of the mobile application for traders Robinhood, said in a talk at the Conference 2022 that bitcoin has more recurring sales than hot stocks like Apple and Tesla.
Aparna Chennapragada explained that they had measured the periodic purchases of bitcoin made by users and they were higher than the recurring purchases of Apple and Tesla. Periodic purchases are part of a user strategy to optimize their profits, starting from a fixed investment that is made with a certain frequency.
Billion dollar investment opportunities in bitcoin
Beyond the sale of bitcoin, there are a great diversity of investment alternatives in that cryptocurrencyaccording to a panel of companies SillMark, XBTO Group, Morgan Creek and RW3 Ventures, at Conference 2022. These companies invest in bitcoin and explained that there are several levels or layers: investing directly in bitcoin, investing in companies related to bitcoin and invest in bitcoin derivatives, such as options or futures.