Despite the flush on Monday, Bitcoin has dropped back to $ 30,000. The leading cryptocurrency is currently trading at $ 32,500, below the $ 36,000 the cryptocurrency saw in a bounce earlier in the day.
Bitcoin’s decline comes despite the fact that funding rates have been reset on leading crypto asset futures platforms. The funding rate is the recurring fee that long positions pay to short positions to keep the price of the future at the spot price. High funding rates, like those on Saturday, were what signaled a correction for many over the weekend.
The cryptocurrency could suffer even more losses, some analysts say.
Bitcoin Set To Fall Lower?
Not all analysts are convinced that the Bitcoin shakeout is happening despite the cryptocurrency losing nearly 30% in the space of 48 hours.
Commenting on the recent price action and what’s likely to come, a crypto asset analyst recently noted:
“Still think we can use one more drop lower to really soak up some liquidity to fuel up to $ 50k + the next leg”
Chart of BTC's price action over the past few months with an analysis by crypto-asset naalyst HornHairs (@CryptoHornHairs on Twitter). Source: BTCUSD from TradingView.com
Trends in the chain remain bullish
Despite the decline of Bitcoin, trends in the chain for this market remain bullish. Aleks Larsen, a venture investor at Blockchain Capital, said of HODLer trends for Bitcoin:
“6 / Looking good for growth rates in the HODLer segment! Nice and steady growth for BTC via the bear market. Retail is starting to push in, but for most of 2020 this was institutionally driven – fewer additional holders, but much larger positions. “
Another positive sign to look out for is Grayscale Investments reopening private placements for its cryptocurrency investment funds.
Analysts found in December that Bitcoin underperformed when private placements were closed. The reopening of these trusts to institutional and accredited players can drive up prices as capital flows into the space.
Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Growing
Featured Image from Unsplash Chart from TradingView.com Price Tags: xbtusd, btcusd, btcusdt Bitcoin Just Dropped Below $33,000 Despite Recovery to $36,000