Institutional investors continue to show an increased interest in Bitcoin and are willing to overpay to gain access to CME Bitcoin futures contracts.
With the upcoming Chinese New Year, the current sale is likely to continue, according to Lennard Neo, head of research at Stack Funds.
“With the holiday approaching, miners are increasingly selling their positions. It also suggests that the minimum price at which miners can comfortably store BTC has yet to be determined, and we expect this volatility to continue in the coming weeks. ”
The growing interest from institutions and the emergence of DeFi are major drivers of the rise in BTC prices. Ahead of the Chinese New Year, the key support level to watch is now $ 34,000, while the upside is likely to meet resistance at $ 38,000.
The $ 4.9 billion BTC futures that expired on January 29 seem to have had little impact on the market as Robinhood’s trial last week brings more attention to the cryptocurrency industry.
Traditional markets faced a new wave of pressure that resulted in the worst weekly reading for the S&P 500. The Dow, NASDAQ and S&P 500 ended the day in negative numbers, shedding 2.03%, 2.0% and 1.93% respectively.
Altcoins are showing signs of growth
While Bitcoin price struggled to maintain the $ 34,000 level, DOGE broke into the TOP 10 and a number of altcoins showed a bullish breakout.
XRP and Stellar (XLM) are up about 9% in the past 24 hours, while Voyager Token (VGX) has continued to rise, currently up 70% to trade at $ 1.77.
At the time of writing, the total cryptocurrency market capitalization is $ 1.0 trillion, and the Bitcoin dominance rate is 63.6%.
What Is Bitcoin?
The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and, unlike government-issued currencies, it is operated by a decentralized authority.