A number of mainstream companies have huge stacks of Bitcoin (BTC) since the summer of 2020. Meanwhile, the asset shot past its 2017 record close to $ 20,000, recently cracked $ 34,000 before retreating to $ 27,700. However, according to Jason Lau, OKCoin’s chief operating officer, the dip has created serious buying pressure.
“Over the weekend, as Bitcoin prices hit new all-time highs near $ 34k, markets reached new levels of resistance,” Lau told Cointelegraph. , ”He noted and added:
“Profit taking took place around these levels, resulting in sideways trading, leaving many long overloaded on futures. We saw $ 1.4 billion in BTC and $ 500 million in ETH futures liquidated in the past 24 hours, resulting in a sharp dip to the $ 29,500 level for Bitcoin. However, these dips are bought up pretty quickly, reinforcing the story that there are underlying bids from institutions eager to access bitcoin. “
Last year started a trend from major mainstream players – including MicroStrategy, MassMutual and Paul Tudor Jones – who allocate huge sums of capital to Bitcoin. The public can thank this institutional inclusion ahead of Bitcoin’s recent rally, according to comments from crypto bull and Galaxy Digital CEO Mike Novogratz.
“In addition, we saw a rotation of BTC during this period as traders rotated assets from BTC to alts to earn higher returns,” Lau explained of Bitcoin’s recent price move. “This is clear as Ethereum gained 13% against bitcoin in the past 24 hours, while bitcoin’s dominance fell to 69%.”