Analysts at Bexplus believe that from the perspective of volume and price performance, the signs of BTC short-term trading volume adjustment are very prominent. Developed to the present, the mid-term adjustment of the BTC market may have begun. Especially in conjunction with the falling price trend of US stocks, the adjustment of BTC is more worthy of attention.
Starting on January 3rd, BTC’s 24-hour trading volume has reached more than 80 billion US dollars. The trading volume level continued until January 5th, and there is no significant sign of shrinking. This shows that a large number of investors have bought and sold BTC at high positions. When the BTC price retreated sharply on January 4th, the daily line volatility reached 17.6%, and the contract liquidation in the whipsaw phase was as high as 1 billion US dollars. There is no doubt that the bulls are the main force of liquidation.
In terms of market linkage, during the BTC decline, the performance of the US stocks also retreated simultaneously. The Dow Jones index closed down by 1.25%. As a risk asset, BTC does not enter the adjustment phase alone.
The reason for Bitcoin’s surge in a year is believed to be Wall Street’s growing interest in digital assets. At the same time, with global low-interest rates, Grayscale and other institutions hope to use Bitcoin to capture excess returns, which has promoted the formation of a BTC bull market. Under the current situation of low-interest rates, the adjustment of BTC is still unlikely to change the bull market, but the entry of institutions has increased the room for price fluctuations, and retail investors may pay higher costs to catch up.