New Delhi: Amid the rising volatility in the riskier asset classes, Bitcoin is moving towards the $45,000 mark after a sharp rise on Tuesday.
The largest cryptocurrency in terms of market capitalisation is among the second best performers among the digital tokens, rising as much as 17 per cent in the last one week. Only Terra (LUNA) is ahead of Bitcoin, rallying over 70 per cent.
The total marketcap of Bitcoin is inching towards the $900 billion mark. However, the volumes of crypto assets have dropped more than 12 per cent as Bitcoins worth $33.5 billion exchanged hands in the last 24 hours, the data suggest.
Raghav Gupta, Founder, EquiDEI said, “The onset of Russia-Ukraine friction was followed by a dip in Bitcoin prices, but the markets are slowly recovering. Bitcoin is being viewed as a safe haven amidst rising inflation and market disruptions.”
Crypto experts believe that amid the global volatility and rising inflation concerns, the $45,000 mark for Bitcoin should not be seen as a surprise.
Reading the technical charts, Vikram Subburaj CEO of Giottus Crypto Exchange said that Bitcoin may hit the $45,000 mark soon as few traders see this movement as an impulsive Elliot wave.
“We have already been rejected from the level once, but there’s adequate potential for us to retest and break it. This doesn’t mean a corrective way won’t take Bitcoin down below again though,” he added.
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“If $39,000 levels are broken on the downside, we may be in for a longer bearish market ahead,” Subburaj said. Similarly, $50,000 is the key resistance. For the time being, Bitcoin may remain range bound, he added.
Market readers said that the emerging trends indicate a positive picture for cryptocurrency adoption as both Russia and Ukraine have been falling for crypto markets.
“The crisis has uncovered various inefficiencies in traditional finance and more people are turning to crypto every day,” Gupta said. As capital controls and global financial disruptions increase, Bitcoin will emerge as a safe monetary network, he added.
Bitcoin has leapt since Russia’s invasion of Ukraine. Globally, the number of addresses with more than 1,000 Bitcoins has suddenly spiked, reflecting the high demand for Bitcoin.
Market experts suggest that buying Bitcoin at current levels purely depends upon the investor’s approach, goals and objectives. One should wait for clear direction on charts to make a fresh position, they suggest.
Crypto investments are not for short term and timing the market would not be a prudent approach they caution, particularly in the volatile period.
Subburaj advised investors to follow dollar cost averaging (DCA) instead of waiting deterministically for a price. Gupta said that crypto volatility is not new and ultimately. “It is the buy-and-hold strategy that wins,” he added.
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