In spite of the recent surge in the value of the U.S dollar, profit-taking by a significant number of retail investors in the flagship crypto staged a come-back, after dipping near $10,000 price level.
Nairametrics observed that a lot of buyers increased their buying pressures on Bitcoin, anytime it stayed around the psychologically important $10,000 level, as it just did some hours ago.
According to data retrieved from Coingecko, Bitcoin’s price was above the $12,000 for the first time since August 19. Then prices dropped momentarily to $11,920 price levels. The price correction continued till Bitcoin fell to as low $10,025 by Friday and has just bounced up, trading around the $10,400 price level.
READ: Leaked email reveal a bank can’t pay GDR dividend due to dollar shortages
At the time this report was drafted, Bitcoin was trading at $10,437.05 with a daily trading volume of $25.9 Billion. BTC price is up 1.8% in the last 24 hours.
The macros helping Bitcoin
In recent times, some emerged markets have beefed up their monetary activities, attempting to prop up a fragile economy disrupted by the raging COVID-19 pandemic.
Such efforts had included EUR750 billion passed by the EU and trillions of dollars pending at the U.S congress, which, in part, is to stimulate global spending, thereby leading to inflationary concerns, as more money flows into an already over-bloated global momentary system.
READ: Buying signs: Ethereum’s total coin supply held off exchanges continues to rise
Some of these funds have found their way into the crypto market, due to investors aggressively looking for high gains, as cheap money inflow hits record highs.
BTC holds a maximum supply of about 21 million digital coins of which there are about 18.5 million in circulation, while over 4 million BTCs have already been lost forever. These show that its definite supply protects the asset against value dilution as seen in inflationary assets like money.
READ: CBN reviews minimum interest rates on savings deposit to 1.25%
Top Crypto researcher, Ryan Watkins, advised traders and investors on looking keenly at bitcoin’s price pattern, as bullish runs in crypto markets don’t just go up in a straight line, due to sell-offs along the way.
Even in bull markets cryptoassets don’t just go up in a straight line.
There will always be dumps along the way. Sometimes massive ones.
h/t @C1aranMurray for the chart pic.twitter.com/tqNF4G6QH4
— Ryan Watkins (@RyanWatkins_) September 4, 2020