Last week, bitcoin witnessed a surge in prices for the first few days, which was a part of the hype cycle that was coupled with FOMO, and by the middle of the week, significant correction had kicked in
NEW DELHI: Bitcoin reclaimed the $50,000 level on Tuesday, as the recent fall in prices of the cryptocurrency attracted buyers, while existing investors held onto their positions.
The world’s biggest cryptocurrency had hit a record high of $58,640 on 21 February, but with the rally looking stretched, prices fell to a low of $43,343 last week. “The market has again started recovering and the dip that was seen in the past week may just end up as a blip in the bigger picture," said Sathvik Vishwanath, co-founder and CEO, Unocoin.
According to blockchain data and intelligence provider Glassnode, while the correction created signature sideways and choppy behaviour, it seems buyers are stepping in sooner, and fewer HODLers are letting go of their coins this cycle.
HODL stands for “Hold on for Dear Life", which suggests that one is holding onto their cryptocurrencies despite the price dips.
“There is anecdotal and data-driven evidence that the market has seen an influx of new retail investors," Glassnode said in a note.
Bitcoin moved in a wide range of $47,099.06-50,249.01 in the past 24 hours, trading at $49,084.73 as of 0405pm, up 3.6%, as per CoinGecko.
Last week, bitcoin witnessed a surge in prices for the first few days, which was a part of the hype cycle that was coupled with FOMO, and by the middle of the week, significant price correction kicked in.
“The dip was equivalent to what the industry gained in the last two weeks, but it was not strong enough to be called a dump in the market. As we have entered the last month of our financial year and we are expecting some people to do profit or loss booking to take advantage of paying income tax by negating their other sources of income to be loss or profit, respectively. Many people who had felt that they missed the bus when the price was about 20-30% lower than the peak now have a second opportunity to get in," said Vishwanath.