Establishments are thrilled that you just’re promoting, suggests OKCoin COO
A number of mainstream companies have picked up massive piles of Bitcoin (BTC) since summer 2020. Meanwhile, the asset surged above its 2017 record high near $ 20,000 and recently cracked $ 34,000 before retreating to $ 27,700. However, according to Jason Lau, chief operating officer of OKCoin, the decline has created serious buying pressure.
“Over the weekend as bitcoin prices hit new all-time highs near $ 34,000, markets hit new levels of resistance,” Lau told Cointelegraph, “he noted, adding:
“Profit-taking was around these levels which resulted in sideways trading and resulted in many of them being overburdened on futures for a long time. In the past 24 hours, $ 1.4 billion in BTC and $ 500 million in ETH futures were liquidated, causing a sharp drop to the $ 29,500 level for Bitcoin. However, these dips are being bought up pretty quickly, which confirms the statement that there are underlying offerings from institutions looking to access Bitcoin. “
Last year began a trend of large mainstream players – including MicroStrategy, MassMutual, and Paul Tudor Jones – providing massive amounts of capital to Bitcoin. According to comments from Crypto Bull and Mike Novogratz, CEO of Galaxy Digital, the public can thank this institutional acceptance for Bitcoin’s recent rally.
“In addition, we saw a rotation of BTC during this period as traders turned BTC assets into alts for higher returns,” Lau explained of Bitcoin’s recent price action. “This is evident as Ethereum has gained 13% versus Bitcoin in the past 24 hours while Bitcoin dominance has dropped to 69%.”
Ether (ETH) recently surged above $ 1,000 in a sizeable move that outperformed Bitcoin in the short term.