On January 4, the bitcoin price experienced its steepest drop since “Black Thursday” in March. The flagship crypto dropped from $34,000 to $27,700 aiming to fill CME gaps and in the process, shorters on Binance lost $190 million within minutes.
Nonetheless, bitcoin managed to recover a short time later and it is currently trading above $32,600. Its market capitalization is hovering around $606 billion.
According to Veteran trader Cantering Clark, bitcoin is exhibiting high volatility that may benefit the traders in the coming weeks. Clark shared a chart on Twitter showing that bitcoin might trade between $27,700 and $35,000 throughout January 2021.
Another trader, “Byzantine General” is also bullish on BTC price in the long term. Nonetheless, according to him, bitcoin will trade in a narrow price range with elevated volatility in the coming days. It might be evident that many altcoins do not show any constant upward movement. Thus, the altcoin season might start soon and will be led by Ethereum.
Bitcoin is moving up, but altcoins aren't tanking vs BTC.
— Byzantine General (@ByzGeneral) January 5, 2021
In the meantime, trader “CRYPTO₿IRB” says that another major correction might come u if Bitcoin fails to surge above $33,800. In case the bulls fail to regain this level, the next target of $40,000 would appear on the horizon. Irrespective of that, he also sees the recent correction as being healthy.
Just dropped my free market report to help you decide the scenarios for $BTC. If 33.8k+ supply is reclaimed by bulls, then correction concept may get invalidated, and we see 40k+ fast. Invalidation plays are much more profitable than regular swings. Read👉https://t.co/ECwH0QFcJw pic.twitter.com/MXW5pzo8gS
— CRYPTO₿IRB (@crypto_birb) January 5, 2021
Other experts in the sector are also predicting that an altseason may be just around the corner. Trader “SalsaTekila” states on Twitter that he will not short altcoins in the near term. Even if bitcoin drops, altcoins may rise given the high bitcoin dominance.
More Heavyweights Join The Crypto Space
In 2021, many big players like MassMutual, MicroStrategy, Ruffer Investments, and Guggenheim Funds made a splash in the crypto world. They invested several hundreds of millions of dollars in bitcoin which ignited institutional interest in bitcoin. The trend may continue, as it is already evident in the first few weeks of the year.
On Monday, it was published that a Singapore-based hedge fund, Three Arrows Capital, is investing $1 billion in bitcoin. The hedge fund does not own the bitcoins itself. However, it has used Grayscale’s services and acquired 36,969 Bitcoins or 38,888,888 GBTC through it. GBTC are bitcoin units from the Grayscale Bitcoin Trust.
JUST IN! Three Arrows Capital position in GBTC tops $1 billion
As per a filing with the SEC, the firm's holdings represent 36,969 bitcoin.
"We continue to enjoy working with the Grayscale team and look forward to investing more in the crypto ecosystem" ~ @kyled116
— Frank Chaparro (@fintechfrank) January 4, 2021
Additionally, Skybridge Capital, an investment fund, announced the official launch of its new bitcoin fund on January 4. For now, over $300 million has been poured into the fund. Furthermore, Bitwise’s capital under management in BTC has also increased.
In a press release, the firm said that capital under management in BTC has surged from $100 million in early October to $500 million. Notably, demand has exploded in recent weeks. The CEO of Bitwise, Hunter Horsley, said:
The speed at which the professional investors are currently diving into crypto waters is remarkable. If this continues, mass adoption of bitcoin and other major altcoins will be possible.