TL;DR Breakdown
- The price of bitcoin has moved past $57,000.
- Price is now in an unhealthy zone, says Ki-Young Ju.
- BTC may replace Gold as the new store of value
Bitcoin moves past the $57,000 price mark
Bitcoin has made impressive gains in the last 24 hours when the price moved past the $57,000 price level. The largest cryptocurrency has risen by 18.19% on the weekly charts. About an hour ago, Bitcoin was trading at $57,418. Currently, the market cap of BTC is extremely close to reaching 10% of gold’s total market cap.
Santiment, an analytical firm, revealed that the recent surge in the price of the coin is because the pressure of shorting has reduced. The firm also revealed that based on the funding rate in the BitMix futures market, bear traders are receiving more incentives.
Is Bitcoin price now in the greed zone?
The CEO of CryptoQuant, Ki-Young Ju, linked the bullish momentum of the cryptocurrency to whales holding stablecoins and retail investors. He added that the price has entered an “unhealthy” region because of the lack of new dollar inflow into the spot market. However, he cautioned derivative traders to be careful even though it’s not a sell signal.
With the continuous rise of BTC, it appears that there is less incentive to make the bulls take profits. However, analyst Schultze-Kraft has identified a significant support zone between $48,000 and $52,000. However, he revealed that price could be heading to a sustainable zone or “greed zone”.
In light of the current surge, institutional investors may start to show more interest in Bitcoin. Provided that this rally is sustainable in the long run, large investors may dump gold and embrace BTC as the new store of value and a hedge against risk.
With the market cap of the asset now at $1trillion, Mike McGlone, a senior strategist at Bloomberg, predicted that four years from now, the crypto asset will be valued more than gold. He believes the price of the digital gold can still go higher.
