What about those hidden clues that point to Bitcoin’s potential future?
Analysts at Cointelegraph have focused on the $7.6 billion that currently is sitting on the sidelines, stored in various stablecoins and just waiting to jump into the fray. Are these funds waiting for the halving event to have its greatest impact on prices or are these investors taking a breather until the COVID-19 pandemic runs its course. Much has been made in the press about a poor earnings season driving the S&P 500 to greater lows and dragging Bitcoin with it. Are investors in stablecoins waiting for bargains to arise?
Bitcoin is presently hovering about $7,130, a formidable level of both resistance and support. One positive insight suggests that a gap of $8,500 on the CMA futures exchange must be filled going forward. Another positive sign is that Renaissance Technologies, a Wall Street fund manager with nearly 6 billion in assets under management, has shown an interest in cash-settled BTC futures on the CME. In a recent regulatory filing, its flagship Magellan Fund sought approval to participate in BTC futures, considered a precursor of institutional activity in a big way.
Once again, we are confronted with Bitcoin sitting atop a precipice. It has been trapped in a long-term descending channel since June of last year, and now it is starring down a make-or-break crossroads. Which way will it go – up or down? There is no body of absolute consensus at the moment, an indication of the ambivalence that exists within the Bitcoin investor world. If equities tank once more, as some believe, then Bitcoin may display its tight correlation of late with the S&P 500, but if miners choose to stoke Bitcoin valuations higher to offset halving, then the race could be on.
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