Bitcoin exchange reserves near 7-year low as hedge funds buy the dip
Bitcoin has been making headlines recently with its potential to reach a new all-time high of $100,000. However, according to analysts, the leading cryptocurrency may not have enough trading volume to break through this resistance level just yet.
The recent rally in Bitcoin’s price has been largely driven by a potential supply shock, as more and more institutional investors and corporations are buying and holding large amounts of the digital asset. This has caused a shortage in supply, leading to a surge in demand and ultimately driving up the price.
But despite this bullish momentum, analysts are cautioning that Bitcoin may not have enough trading volume to sustain a push past the $100,000 mark. This is because trading volume, which measures the total amount of assets being bought and sold, has not seen a significant increase alongside the price rally.
In fact, data from CoinMarketCap shows that Bitcoin’s trading volume has been relatively stagnant in recent weeks, hovering around $50 billion per day. This is significantly lower than the trading volume seen during the 2017 bull run, when it reached over $100 billion per day.
Some experts believe that this lack of trading volume could be a sign of a potential market correction, as it indicates a lack of strong buying pressure to support the current price levels. Others argue that the current trading volume is still healthy and that Bitcoin’s price may continue to climb in the long term.
Regardless of the differing opinions, one thing is clear: Bitcoin’s trading volume will play a crucial role in determining whether it can break through the $100,000 resistance and sustain its upward momentum. As more institutional investors and corporations enter the market, it will be interesting to see if trading volume will also increase, providing the necessary support for Bitcoin to reach new heights.
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