Bitcoin, the largest crypto token is currently bleeding – there’s no denying this. Consider this, it witnessed corrections of 11% weekly and 2% in 24-hours. At press time, it was trading at the $42.3k mark. There’s more to it, the Bitcoin Fear and Greed Index plunged to 21, showing a state of “extreme fear” among the crypto community. Probably, the first time in 2 months.
So, who’s in control now?
Scott Bauer, CEO of the professional trading platform Prosper Training Academy touched upon this question in a recent interview. He noted that Bitcoin’s price was in the same range for a long time, giving bulls the perfect opportunity to buy at a discount. “It happens to be at the very low end of this range,” she said, and further suggested,
“…until we really break that $42,000 and (even) get down to maybe the $36,000 or $37,000 level, I think the bulls still have the upper hand.”
However, he also stated that there still lies a “macro narrative” for Bitcoin, and it’s the Federal Reserve. Bauer indicated that Bitcoin might be awaiting the next announcement by the Federal Reserve on interest rates. Stock markets or rather the equity sector too rode the same bandwagon.
Needless to say, investors will opt to await the Fed’s next direction. Although, the correlation between cryptocurrencies, interest rates, and the dollar remained unclear. He opined,
“The correlation of crypto to interests rate to the dollar, we don’t really know what that is but I think this is maybe a ‘wait and see’ kind of scenario now.”
Uncertainty prevailed, but are whales buying the dip?
Moreover, Bauer further noted,
“The bulls out there… I don’t want to say, they’re not concerned…but the big guys, the whales, they’re actually accumulating on this here…over the last 24 to 36 hours. Would I take this as more of risk off in terms of this is the first thing and the easiest thing, maybe the most liquid thing that that people that have risky assets can really get to and access obviously 24/7. So as the markets really sold off.. what in my estimation, people were really going to first, was crypto.”