Market Stagnates, Influencers Try to Back Bitcoin (BTC)

Market Stagnates, Influencers Try to Back Bitcoin (BTC)

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The dramatic market crash could not help but frighten retail investors, who are engaged in a panic sell-off of cryptocurrency. But institutionals are hesitating this for now, and some of them, on the contrary, buy BTC at the lows.

Bitcoin rebounded from the $30K level and rallied above $40K. But this did not calm the markets. Now even die-hard crypto enthusiasts are questioning whether the bullish trend will continue.

The market collapsed at the moment by more than 43%, from $2.373 trillion to $1.350 trillion, later it rebounded to a level above $1.7 trillion. Analysts believe that this level of decline is in line with the impact on the market for retail investors. The fall is being held back by whales who follow a conservative strategy and invest in leading coins, bitcoin first of all.

This assumption is proved by the fact that Bitcoin Dominance rose again to 43%. However, JPMorgan analysts argue that institutionals have begun to shift from bitcoin to traditional assets such as gold.

They analyzed the whales’ investments in bitcoin futures on the CME exchange. According to JPMorgan, the bitcoin futures market is experiencing a sharp and prolonged liquidation of positions. A few days ago, the research firm Glassnode published data on a record BTC move to exchanges. All this may indicate a change in trend and a continuation of the fall in BTC and the market.

However, some analysts point out that a fall below $30K is unlikely, since this price was a strong support level earlier, in January and February 2021. Elon Musk once again tweeted on crypto and this time – positively. He published a laconic diamond hands emoji (a combination of diamonds and hands) that has the meaning of “hodling an asset despite volatility.”

Bitcoin is also supported by Justin Sun’s announcement that he bought over 4,000 BTC at the bottom. Justin Sun is the founder of the TRON platform and the TRX cryptocurrency, which is included in the TOP-25 cryptocurrencies according to Coinmarketcap. Sun is known for his aggressive marketing and effective business decisions. In 2015-2017 he was included in the Forbes China 30 Under 30, the 30 most successful Chinese businessmen under 30. Now he is almost 31 years old and has behind both victories and defeats.

In February 2019, it acquired BitTorrent, Inc. (now Rainberry, Inc.) and launched the BTT token, which has grown 22 times from January to April this year, from $0.0004737 to $0.01068, and is now trading at $0.004. Both TRX and BTT are following the dynamics of the Binance Coin (BNB), which has grown 18 times from $38 to $675.68 from the beginning of the year to May.

It is known that Justin Sun and Binance CEO Changpeng Zhao (CZ) are friends. Perhaps the large buying of BTC is a friendly service for CZ, who is going through a tough time due to the investigation of Binance by US regulators.