Bitcoin breaches $100K again, fueled by institutional investment, unlike Trump's short-lived victory spike
Potential obstacles to Bitcoin reaching $150K, explained by Michael Saylor
Bitcoin's meteoric resurgence and crossing the $100,000 mark signals a potential sea change in market mood, bouncing back after a drawn-out bearish phase. Contrasting the fleeting spike during Donald Trump's presidency victory, when BTC touched $109K before plummeting due to economic tension, the current surge seems more stable at $103K, showing modest 0.57% growth within the past day, according to CoinMarketCap.
Michael Saylor, MicroStrategy's founder, offers insights into the phenomena, pointing out that short-term holders are exiting the market, but this is being offset by a wave of long-term investors preparing for a prolonged rally ahead.
On the Coin Stories podcast (9th May), Saylor stated,
Saylor underscores that a significant portion of Bitcoin has been controlled by entities like government bodies, custodians, and bankruptcy trustees, who don't adopt a long-term investment approach. With the recent market bullishness, these transitional custodians seized the opportunity to offload, pursuing liquidity.
However, Bitcoin may encounter a roadblock before reaching $150K, as this wave of selling from non-strategic investors stunts the ascent. Still, Saylor remains bullish about Bitcoin's long-term prospects, predicting that institutional investors will continue to invest through ETFs and corporate treasuries.
Meanwhile, staunch Bitcoin critic Peter Schiff found an opportunity to rebuke the king coin.
Technical indicators also support the current bullish trend, with the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) poised above their neutral levels, signifying strong buying pressure and healthy capital inflow. However, the RSI's placement in the overbought territory hints at a possible impending pullback or consolidation phase, as the market strives to establish a more sustainable trajectory. A breach above the $108K threshold may prompt a surge towards $120K [Trading View].
- The crypto market, led by bitcoin, has shown an optimistic shift, surpassing the $100K mark again, a potential sign of a changing market sentiment in finance.
- This resurgence, despite a previous short-lived spike during Donald Trump's presidency victory, appears more stable, currently hovering at $103K, according to CoinMarketCap.
- Michael Saylor, founder of MicroStrategy, suggests that the current market rotation involves short-term holders exiting, replaced by a wave of long-term investors anticipating a prolonged rally.
- Bitcoin's long-term prospects remain bullish, according to Saylor, with institutional investors expected to continue investing through ETFs and corporate treasuries.
- In times of market panic, bitcoin, as the most liquid and leverageable asset, is considered the first choice for sellers seeking to offload other financial assets.
- Technical indicators, such as the Relative Strength Index (RSI) and Chaikin Money Flow (CMF), support the current bullish trend, although the RSI's placement in the overbought territory implies a possible upcoming pullback or consolidation phase.
