Yesterday, Tuesday February 8th, Bitcoin rose rapidly to the $45,000 level and is on a steady rise.
Bitcoin then saw a partial rebound and is currently trading 1.58% lower at $43,600 levels.
With the recent price rally, Bitcoin has managed to break through the descending trend line since November.
Matt Malley, chief market strategist at Miller Tabak + Co, told Bloomberg that bitcoin may take a while to rest after the recent pullback without undoing much of last week’s gains.
Today’s pullback is due to some profit taking after a big move.
Bitcoin is up about 38% on a daily basis in less than two weeks, so I guess it’s just about traders taking some short-term profits.
However, analysts say we should be careful going forward this year as they expect more volatility in the coming days.
The Federal Reserve is set to raise interest rates several times this year, and this leads to more volatility in risky assets such as cryptocurrencies and stocks.
Brian Nick, chief investment strategist at Nuveen told:
There will be no unlimited liquidity from the Federal Reserve anymore.
And if we have higher interest rates, they will tend to make things like crypto less attractive.
Bitcoin whales continue to collect Bitcoin:
While Bitcoin was on a downtrend throughout the last month of January, mega whales continued to pile up throughout the month.
Santiment reports that this is the fastest three-year backlog since 2019.
And what the platform told me:
Bitcoin whales have accumulated massive amounts of money over the past seven weeks.
Addresses with $1,000 bitcoins or more have added $220,000 bitcoins to their pooled wallets since December 23, the fastest buildup we’ve seen since September 2019.
In one of its recent reports, banking giant Wells Fargo told the cryptocurrency market that the cryptocurrency market was in an early stage of Internet-style hyper-adoption in the early 1990s.
In its quest to legalize Bitcoin, Russia is preparing to prepare a regulatory draft by February 18
Meet one of the personalities behind the $4 billion Bitcoin theft from Bitfinex