- Institutional investors are joining the Bitcoin train.
- BTC is above $6,100 now, but is it time to buy?
As institutional investors are getting infected with Bitcoin virus (obeisance to Pompliano), there is nothing capable of impeding the progress of the digital asset and the entire cryptocurrency market at large. We noticed this when Bitcoin price refused to go down when the Bitfinex/Tether issue was hot, and also yesterday when hackers stole around 7,000 BTC from Binance, the largest and most visited exchange.
Usually, news like these cause FUD in the crypto space, and do result in price fall. However, rather than go down, the price of Bitcoin has been going higher to the extent that it broke through $6,100.
At the time of writing, as profiled by CoinMarketCap, Bitcoin is trading at $6,102.64 with 3.63% price increase in the last 24hrs.
Nothing is behind this other than institutional investors coming into Bitcoin every day. Last week, the news of Fidelity Investment, one of the world’s largest asset managers, beginning to trade Bitcoin for its institutional customers came as a surprise. This and other tools have been aiding BTC market price surge.
The involvement of Ameritrade, E*Trade Financial Corp., Robinhood, Bakkt, and some expected ETFs are also behind the price surge.
Is it Time to Buy Bitcoin?
While Bitcoin continues to make surprising moves, a crypto project founder has advised BTC enthusiasts to not HODL at the moment.
The founder and CEO of Civic, Vinny Lingham, had warned crypto enthusiasts not to buy Bitcoin at the moment. According to him, there is possibility of Bitcoin falling back to $3,100.
Speaking on CNBC Crypto Traders (see video at the end), Vinny asserted that users of the cryptocurrency need to be aware that the bullish trend is still not clear.
Until Bitcoin crossed the $5,700 to $,6200 range, and maintained the position for one or two days, it is still hard to say the crypto-winter is over.
Why Vinny Thinks Buying Now is Dangerous.
Going by Vinny’s assertion, the bottom of every Bitcoin bear is determined by a twofold price increase. As pointed by Vinny, the lowest BTC reached in recent time was $3100, so, $6,200 bitcoin price (two folds of the bear price) is required before we can say Bitcoin is prepared for a bull run.
He said: “Until and unless, Bitcoin crosses $6200, you cannot indicate the end of the bear’s market.”
Vinny, going by the historical charts of the bear market cycles, said the bearish trend turns to a bull run when BTC price is twofold of the bottom price. This made him say If Bitcoin price has not reached $6,200, it can go back to or below $3,100.
