Bitcoin is facing strong selling pressure this Thursday as its price has fallen another 1.5 percent.
The benchmark cryptocurrency touched an intraday low of $ 34,200 and hit a higher high after falling below the all-important $ 34,000 support level in the previous session.
Its fall appeared primarily due to profit-taking among traders and investors, especially after the price crossed the $ 38-000-40,000 range on more than two occasions.
As CryptoQuant CEO Ki-Young Ju comments, spot inflows into cryptocurrency exchanges cooled this week, suggesting a longer downward correction in the future.
„$ 35,684 -> $ 34,054, and I expect more,“ said Ju. „BTC OG whales are strong when there are no spot inflows.“
Nonetheless, the long-term bullish fundamentals are abundant this week, giving Bitcoin Profit ammo to continue its bullish run. So why could the cryptocurrency hit $ 40,000 again? Here are three reasons:
# 1 Blackrock announcement
BlackRock, one of the world’s leading investment firms, has filed documents with the US Securities and Exchange Commission seeking to introduce cash-settled Bitcoin futures for two of its funds: the BlackRock Global Allocation Fund and the BlackRock Strategic Income Opportunities Portfolio.
While the announcement is no guarantee that BlackRock will launch a Bitcoin-enabled futures investment service, it does underscore a drastic change in the New York-based $ 7.4 trillion firm’s tone on cryptocurrencies in general. In 2017, BlackRock CEO Larry Fink called Bitcoin the „money laundering index“.
But their recent inclusion of Bitcoin in their SEC filings shows a different take on the cryptocurrency. It confirms the growth of the cryptocurrency as a mainstream financial asset, on par with its top hedge rival, gold.
# 2 Grayscales Bitcoin Accumulation
Grayscale, the world’s largest crypto investment firm, bought an additional $ 600 million worth of bitcoin after pausing its wave of accumulation for more than a week.
Data provided by ByBt.com shows that the New York firm added 16,244 BTC to their vault, bringing total reserves to more than 630,000 BTC, valued at nearly $ 23 billion.
Analysts see Grayscale’s wave of accumulation in the new year as a signal for another price rally.
“Grayscale bought more than 8,000 Bitcoin,” explains Clark Davis, a crypto YouTuber. “If they did this every day they would buy 2.9 million BTC this year. There are only 2 million on exchanges. There is no scenario where the price won’t go much higher with this insane demand. „