Selling Volumes Are Weak As Bitcoin Breaches Weekly Support Amid the Mt. Gox FUD
In a remarkable show of resilience, Bitcoin’s price has remained stable despite fear, uncertainty, and doubt surrounding a potential selloff linked to the defunct exchange Mt. Gox.
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Yesterday, Mt. Gox moved $9 billion worth of Bitcoin to a different wallet, sparking market speculation about a redistribution plan to creditors. Despite these concerns, Bitcoin’s price has not been significantly affected. As of 10:43 UTC, Bitcoin was trading at $67,833.53, a slight increase of 0.11%.
Stability Despite Mt. Gox News A Bullish Signal
This stability suggests that the market either does not expect Mt. Gox creditors to sell their Bitcoin en-masse or believes that Bitcoin can easily absorb such a sale. Given Bitcoin’s average daily trading volume of over $30 billion, the market would require a much more significant sum than $9 billion to impact the price significantly. Additionally, Bitcoin is in a bullish cycle following the April halving, making a large-scale selloff less likely.
Bitcoin ETF Inflows Remain Net Positive
Institutional investors continue to show strong confidence in Bitcoin despite the Mt. Gox FUD. On May 28, Bitcoin spot ETFs recorded a net inflow of $45.1432 million, marking 11 consecutive days of net inflows.
Notably, Grayscale’s GBTC had an outflow of $105 million, while BlackRock’s IBIT and Fidelity’s FBTC had inflows of $103 million and $34.3451 million, respectively. This trend indicates that smart money remains optimistic about Bitcoin’s long-term potential, regardless of short-term fluctuations.
Bitcoin Hype Is Building Up On Social Media
The hype surrounding Bitcoin is also building on social media, signaling that a breakout could be imminent. Bitcoin analyst Stack Hodler today tweeted about Bitcoin’s unique position as a potential neutral reserve asset for corporations, nation-states, and investment funds. While the ETF hype might have cooled, he said, Bitcoin’s value lies in its potential to replace sovereign debt as a primary holding on balance sheets.
You aren’t nearly bullish enough on spot #Bitcoin
Yes the ETF hype has died down.
And as BTC stagnates at ~$70K, you might think you missed the boat.
But there’s one thing that almost everyone is missing about Bitcoin:
Bitcoin isn’t just another risk asset.
It’s uniquely… pic.twitter.com/j6VoUblffo
— Stack Hodler (@stackhodler) May 29, 2024
Companies Adding Bitcoin To Their Balance Sheets
Stack Hodler highlighted that companies like MicroStrategy, led by Michael Saylor, have already demonstrated the benefits of a Bitcoin treasury strategy. Other corporations, such as MetaPlanet in Japan and Semler Scientific in the US, are following suit. As more corporations recognize the competitive advantage of holding Bitcoin, this trend is expected to accelerate, potentially leading to widespread adoption.
Hodler also speculated about the future, envisioning a scenario where every corporation pours its fiat profits into a Bitcoin treasury to outperform those who do not. He pointed out that Bitcoin’s finite supply offers a unique advantage over traditional assets, which can lose purchasing power over time. This idea applies to corporations, individuals, and nation-states.
Countries Adding Bitcoin To Their Treasuries
Another bullish catalyst is the potential for nation-states to adopt Bitcoin as a reserve asset. Only one out of 195 countries has publicly embraced Bitcoin for this purpose. However, rumors about former President Trump considering a Bitcoin strategy for the United States, while speculative, highlight the growing interest in Bitcoin at the highest levels.
El Salvador keeps stacking #Bitcoin. 🇸🇻🫡
As of May 27, the nation-state holds a total of ~5,763 BTC worth over $395.8 million. 🔥 pic.twitter.com/zmH265pJd5
— Carl ₿ MENGER ⚡️🇸🇻 (@CarlBMenger) May 28, 2024
Bitcoin’s resilience amid the Mt. Gox FUD and continued institutional interest underscore its robust market position. With increasing hype on social media and the ongoing adoption of Bitcoin by corporations and potentially nation-states, all indicators point to a major breakout in the near term.
Bitcoin Loses Weekly Support But Selling Volumes Low
Bitcoin has been consolidating between the $69,342 resistance and $68,359 support for the rest of the week. However, today, Bitcoin has broken through $68,359, signaling an increase in short sellers. The selling volumes are low, suggesting a major selloff is unlikely.
The more plausible scenario would be Bitcoin testing the muti-week support at $65,270. However, if bulls regain control and push Bitcoin through the $69,342 resistance, Bitcoin could rally to the March 2024 highs of $73,089 in days.
Why Bulls Could Send Bitcoin Rocketing To $73k
While bears appear to be in control, their volumes are low. This indicates that only a few people will let go of their Bitcoin. Such low selling volumes could boost bullish confidence, especially now that institutional money continues to buy into Bitcoin more aggressively. This makes a breakout to $73k more likely.
Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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