Who Wants to Buy Bitcoin Now?

Who Wants to Buy Bitcoin Now?

Since yesterday, Bitcoin has gone from almost $52K to $50.7K. On Tuesday, the crypto market was green on nearly all fronts, including ETH, ADA, XRP, etc. And although the Fear Index continued to remain in the horror zone with 26 points, everyone was buying altcoins.

However, BTC did not gain a foothold above the resistance at $51,800, so it is premature to talk about conquering the heights and completing the correction. Perhaps this is not even a correction now, but a search for the actual price without rose-coloured glasses and excessive optimism. Whether there are still those who want to ride up at their own expense on the market, we will only find out when Bitcoin rises above $56K.

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A Grayscale poll found that 26% of American investors have already bought BTC. So, apparently, we just need the remaining 74% to join in. But do they have any motivation? Moreover, the United States has introduced cryptocurrencies into its anti-corruption strategy, although exactly how this will affect the market is unclear.

Aside from the local downward trend in Bitcoin, the cryptocurrency market remains bullish, rapidly changing sentiment and moving from correction to growth. Based on the posts on Twitter, the popularity of cryptocurrencies is only growing. Thus, in partnership with the Gemini crypto exchange, the largest bank in Colombia, Bancolombia, added transaction services with BTC, ETH, LTC, and BCH to its list.

Video game developer Ubisoft has launched an NFT platform, and blockchain project Spiral, a division of Jack Dorsey's Block, will improve Bitcoin's Lightning Network.

Among the small altcoins, the hot class of projects related to the metauniverses remains. This topic is so popular that almost any new project considers it its duty to point out the potential for the development of this topic. It seems that investors are recruiting all newcomers to their portfolio, hoping to get an impressive profit if at least one project hits.

However, you should be extremely careful. At the end of November, it seemed that the Covalent coin, issued six months ago, recovered relatively quickly from the traditional drawdown in the first months of its life. However, since the beginning of December, its value has been rapidly decreasing, colouring the first eight days of the month in red and confidently remaining below the offering price. At the same time, this cryptocurrency suits well for intraday trading: for yesterday's session, for example, it grew by 3.62%, although this did not affect the overall “red” result.

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Alex Kuptsikevich

Financial market professional with 16-years' experience and Senior financial analyst at FxPro. Author of daily reviews on the impact of economic events with comments regularly featured in top international and Russian media. Covers fundamental analysis, global markets, foreign exchange market, gold, oil, cryptocurrencies.

Alex Kuptsikevich is a regular contributor to both digital and print media including CNBC, Forbes, Reuters, MarketWatch, BBC and Coindesk.