- The overall cryptocurrency market entered a deep correction on Wednesday, January 27th. Bitcoin (BTC) and Ethereum (ETH) saw sharp corrections that turned the overall market sentiment into a negative, as the overall market cap fell below $ 900 billion.
The overall cryptocurrency market entered a deep correction on Wednesday, January 27th. Bitcoin (BTC) and Ethereum (ETH) saw sharp corrections that turned the overall market sentiment into a negative, as the overall market cap fell below $ 900 billion.
In the 24-hour outlook, Bitcoin again tested levels below $ 30,000, although it recovered and is currently trading at $ 31,653. However, the constant downward pressure on the BTC price over the past 15 days has left investors confused as to whether we will go for another major correction in the coming days.
A similar situation applies to Ethereum (ETH). Despite its all-time high above $ 1450, ETH was unable to sustain the momentum. In fact, any price correction in BTC led to a simultaneous profit selling on ETH as well.
Bitcoin (BTC) foundations on chain improve, whales addresses rise
In fact, big industry players and whales have continued to establish their positions in Bitcoin during the last two weeks of price correction. Public companies such as MicroStrategy and Marathon Patent Group opened major positions during the recent revision.
The two companies have accumulated a decent amount that would go to their so-called cold wallets, causing BTC supply shortages. On Wednesday, Canadian investment giant Ninepoint Partners launched the Bitcoin Trust Fund, despite past regulatory hurdles related to Bitcoin ETF.
Data from Santiment shows that we have another Bitcoin “mega whale” with more than 100,000 Bitcoins since June 2020. On the other hand, Bitcoin (BTC) addresses with 1000+ BTC continue to grow in numbers.
These evolving core principles and corporate engagement show that individuals can start to accumulate a few sums from now on. Yes, after the mega rally earlier this month, Bitcoin (BTC) price volatility is likely to continue and we can see further declines. It would be a prudent approach to take a step-by-step buying approach rather than being all-in-one.
Also, if you are someone who can afford to wait for a 5-year period, any drop here could be a good opportunity to buy. Over the past decade, BTC has yielded a combined 200% annual return, beating other asset classes by a large margin. If you do your math, you can guess what you might gain from now on. Worried about regulatory action?
Surprisingly, it turns out that lawmakers and traditional institutions are slowly beginning to warm to BTC. Miami Mayor Francis Suarez wants to turn the city into a crypto innovation hub. Interestingly, the Bitcoin (BTC) whitepaper is currently on the Miami Municipal Corporation’s official website. Patrick McHenry, representative of Carolina’s 10th District from the US Congress, praised the Mayor of Maimi.
The situation in Asia looks similar! Bank of Singapore recently stated that crypto assets have the potential to partially replace gold in the future.
Ethereum (ETH) continues fundamental transformation with DeFi
Yes, Ethereum (ETH) has been volatile while failing to sustain new peaks! However, when we look at it, it forms a strong support near the $ 1100 levels. Even at $ 1100, the ETH price has increased by 50% year-to-date. Just like Bitcoin, ETH fundamentals are getting stronger.
ETH supply in exchanges hit a 26-month low, leading to a supply shortage. Also, there is great corporate interest in the launch of CME Ether Futures in the next ten days.
Based on the growth of the Crypto DeFi market, market analysts are bullish in Ethereum (ETH). CoinShares chief strategy officer Meltem Demirors recently stated that Ethereum has undergone some fundamental structural changes:
We’ve seen a lot of product streams, and when it comes to new applications, products, and services being built, most of them are built on the Ethereum network.