- Deutsche bank analysts expect the leading cryptocurrency to become Gold of the 21st century.
- Institutions continue injecting capital into BTC as BlackRock SEC filings show a gain of $369,000 from investment in BTC futures.
- Nearly $5 billion worth of BTC was liquidated alongside dropping open interest.
The average social sentiment on Bitcoin is predominantly bearish, based on the analysis of over 1,000 crypto-related social media channels by crypto intelligence platform Santiment. The asset’s social dominance has dropped to its lowest point, suggesting that there is room for the price to bounce back.
Bitcoin primed to make a comeback in Q4 2021
Marion Laboure, a market strategist at Deutsche Bank is of the opinion that Bitcoin could potentially become the 21st century’s Gold.
According to the strategist, the volatility of the asset has hindered its acceptance as an effective store of value. She expects the asset to remain volatile in the foreseeable future.
I see basically three reasons for this: first, about two-thirds of Bitcoins are used for investments and speculation. Second, due to its limited tradability, just a few additional large purchases or market exits can significantly impact the supply-demand equilibrium. Third, Bitcoin’s value will continue to rise and fall depending on what people believe it is worth.
Gold was historically volatile, therefore, the analyst compares Bitcoin to the precious metal and claims,
I could potentially see Bitcoin become the 21st-century digital gold.
Pseudonymous cryptocurrency analyst @inmortalcrypto on Twitter is convinced that Bitcoin’s recent dip is the last one ever.
The analyst is convinced that Bitcoin has maintained a bottom amidst rising macroeconomic pressures, and this suggests that the asset is primed for a future price rise.
The analyst tweeted:
If you ask me, the fact that $BTC hasn't dropped despite all the FUD is a good sign. Reclaim 45k and I'll long it to a new ATH.
The current dip in the asset’s price that the analyst addresses here was accompanied by declining open interest and massive liquidations. BTC open interest, or the total number of futures contracts held by market participants at the end of a trading day, is considered a useful indicator in assessing BTC demand among traders.
Open interest has remained flat after dropping nearly 40% over the past few weeks. Nearly $5 billion in BTC positions were liquidated, though the number is now trending lower. This implies there is room for vertical growth in price in Q4 2021.
Historically, institutional interest has driven the asset’s price higher. Analysts expect to see the same starting October 2021.
A recent Securities & Exchange Commission (SEC) filing by BlackRock Financial Management, a firm that manages $9.5 trillion worth of assets, shows that the institution gained $369,137 from Bitcoin futures that expired on August 27, 2021.
FXStreet analysts have evaluated the asset’s price and predicted that a drop below $40,000 could trigger a further dip. If the BTC price continues its upward climb, traders may be able to prevent further losses.
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