Public companies have purchased about 85,000 Bitcoin (BTC) in the past year and institutional investors have pumped money into Grayscale Investments, which shows increasing institutional adoption is one of the main reasons for the recent Bitcoin rally.
However, at the moment it seems institutional investors are unlikely to chase prices higher. If the fresh inflow of money stalls or reduces drastically, it could result in a pullback in Bitcoin’s price. If that happens, short-term traders and momentum players may book profits and trigger a deeper correction.
Daily cryptocurrency market performance. Source: Coin360
A correction will be a healthy sign because it will shake out the speculators and only the long-term HODLers will be left in the market. As the price dips, additional institutional investors may start buying at lower levels. The transfer of Bitcoin’s ownership from speculators to long-term investors will be positive in the long term.
If Bitcoin enters a deeper correction in the short term, several altcoins are likely to follow suit.
Let’s studyTitle: Price analysis 1/27: BTC, ETH, DOT, XRP, ADA, LINK, LTC, BCH, BNB, XLM
Sourced From: cointelegraph.com/news/price-analysis-1-27-btc-eth-dot-xrp-ada-link-ltc-bch-bnb-xlm
Published Date: Wed, 27 Jan 2021 18:40:42 +0000