Bitcoin has just retested $40k and looks ready to push further
This comes after Grayscale added 2,172 BTC to its bags in the last 24 hours
Institutional buying of Bitcoin is back in high gear with the new year
However, a move back down by Bitcoin cannot be dismissed
The King of Crypto – Bitcoin (BTC) – has shrugged off calls for a correction by consecutively reclaiming the $36k and $38k support areas to retest $40k. At the time of writing, Bitcoin is trading at $39,700 after the $30k to $32k support zone held well in the fast half of the week.
The latter support zone will be one to watch on a macro level as Bitcoin attempts to break its most recent all-time high of $42k.
Mainstream Media Was Quick to Call a Bitcoin Bear Market
The dip by Bitcoin to $30k levels was a massive 26% dip from $41k that resulted in mainstream media, such as CNN, declaring that BTC was now in a bear market. Below is a screenshot of the headline by CNN declaring a Bitcoin trend reversal into bear territory.
Grayscale Adds 2,172 BTC to its Bags
However, CNN had not factored in that institutional demand was still in high gear as Grayscale has just added 2,172 BTC to its bags in the last 24 hours. The addition of 2,172 Bitcoin by Grayscale was first highlighted by the team at Bybt.com via the following tweet.
Grayscale accumulating Bitcoin in 2021 was forecasted by Bitcoin and Crypto analyst, Joseph Young, who had postulated that the buying in early January had paused due to the holiday season.
The Grayscale Bitcoin Trust has not reported additional inflows since Christmas (Dec. 25, 2020) due to the holiday season / year end. When $BTC inflows start coming in, indicating institutional demand, that’s when Bitcoin could start to rally upwards again. Worth observing.