Will Institutional Investors Determine the Future of Cryptocurrency Trading?
Scroll DownIf you have been keeping an eye on the cryptocurrency markets, you probably know that Bitcoin has barely been able to recover from a pullback correction that drove it down from nearly $60,000 to $30,000 in a matter of weeks. Hopeful investors betting on a swift recovery have only been able to prop BTC closer to $38,000; there is a psychological market pricing goal of $50,000, but market analysts do not see that happening soon.
Not everything is gloom and doom in the world of cryptocurrency trading. There has been a rebound that suggests investors are not ready to abandon ship just yet, but the only tokens posting decent price increases are two altcoins not many people are familiar with: Solana and Enzyme. Even the newfangled segment of decentralized finance (DeFi) technology is feeling the pain. If you hold SOL or MLN tokens, things are probably looking pretty good right now, but you should know that this is mostly an effect related to volatility, and this temporary rally may soon come to an end. For the rest of cryptocurrency investors, particularly those who hold major tokens, this is how the market may unfold in the near future:
Bitcoin traders will continue their attempts to push the token back towards $50K, but all rallies will probably last 12 days before a pullback takes place. A Bitcoin Cash rally is more likely to hold for a little longer. Here we should remember what happened on November 2016, when the value of the BCH tumbled across major exchanges, dropping to just a few dollars, but coming back with a vengeance over a period of eight months.
There have been significant discussions and speculations regarding its status on other exchanges, but the price of BCH has never seen a big change like this until recently. What is interesting about the current status of the markets is that they are mostly flat when they should actually be more volatile. Traders are on a holding pattern; perhaps they are waiting to see what institutional investors will do next, and this is when we will see greater volatility.
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