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Bitcoin Flirts With 9-Day Winning Streak, Nears $48K

Bitcoin

www.coindesk.com 30 March 2022 21:10, UTC
  
Reading time: ~2 m

Bitcoin (BTC) was on the verge of a nine-day winning streak – but barely, as the largest cryptocurrency's recent price momentum appeared to slow.

The bitcoin price was around $47,026 as of press time, down 1.67% from yesterday.

The cryptocurrency had climbed for eight consecutive days, lifting the price from about $40,000 and reaching a new 2022 high around $48,200 on March 28.

  • “Based on recent price action, it looks like BTC is consolidating within a range and has room to move higher,” blockchain analytics platform Nansen told CoinDesk. “There are other clear indicators that risk appetite in the market has increased."
  • According to Nansen, Ethereum gas fees have been very high recently, which has typically been a solid indicator of a shift to more risk-on investor behavior.
  • “Bitcoin dropped in the early hours of the morning, after the largest blockchain game Axie Infinity suffered a $625 million hack,” wrote Global Block in its newsletter. “The dip has been bought up as bitcoin remains above $47,000, showing great strength amongst the news of the hack.”
  • The hack happened in cross-chain bridges that are secured by only one centralized computer.
  • MacroStrategy, a wholly-owned subsidiary of the enterprise analytics and mobility software provider MicroStrategy (MSTR) that invests in bitcoin as its central business strategy, has obtained a $205 million loan collateralized by bitcoins from Silvergate Bank.
  • MacroStrategy can use the loan to purchase bitcoin or pay interest and fees related to the loan or for its or MicroStrategy’s general corporate needs.
  • Luna Foundation Guard (LFG), a non-profit organization focused on UST, resumed buying the largest cryptocurrency after taking a break on Tuesday. It has purchased 5,773 BTC, worth $272 million, this week.
  • “The buy pressure of MicroStrategy and Luna Foundation Guard is understandably contributing to a strong uptrend in the short-term,” Global Block wrote.
  • “It could be a simple lull now that MicroStrategy and Terra have paused their buying at this moment” said Jason Deane, chief bitcoin analyst at Quantum Economics. “But it could also be a period of simple consolidation after an eight day run.”
  • If it is a consolidation, “these are often considered a bullish indicator, as it gives the market time to build a new base on which to make further price discovery,” Deane told CoinDesk.
  • Deane also said that the number of HODLers, who stick to a buy-and-hold strategy, is increasing rapidly – a positive sign for the price of bitcoin. This also signifies the confidence of long-term bitcoin holders.

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