Bitcoin Finds Support at $50K as Long-Term Appears Intact

By Administrator_ India

Capital Sands

Bitcoin‘s slump Thursday was blamed on hedge funds rebalancing their portfolios ahead of the quarter-end, but the selling to $50,000 found support at a time when signs pointing to the strength of the long-term ‘hold rose to a record high for the year.

BTC/USD fell 3.38% to $52,217, though had been as low as $50,350.

Net transfer volume from/to exchanges – the difference between the amount of bitcoin moving on versus off-exchange – fell to a record low for the year, suggesting the move from exchanges to private wallets – a long-term demand indicator – continues to accelerate.

Net transfer volume from/to exchanges fell to about -1,250 clusters on Thursday, data from on-chain analytics Glassnode showed.

Signs pointing to the strength of the long-term ‘hold come as hedge managers — who have been forced to look in riskier corners of the market like cryptocurrency or high-growth stocks in search of returns — are expected to have to tweak their portfolio allocations ahead of the quarter-end, shedding some riskier positions.

Bitcoin is expected to be one of the victims of the portfolio rebalance, or reshuffle, as managers attempt to move closer to 60% to 40% bond-equity allocation.

On-chain data also added credence to a portfolio shakeout from larger bitcoin holders as the bitcoin whale index, measuring the number of bitcoin addresses with at least 1,000 bitcoins, dropped 10% from its recent high of about 2,500 clusters.

Related posts

Nikkei Closes Above 33,000 For The First Time In 33 Years

Japan’s benchmark Nikkei gauge surged on Tuesday, closing over 33,000 for the first time in 33…
Read more

Carlsberg Expects Lower Beer Consumption To Hit 2023 Growth

Danish brewer Carlsberg (OTC:CABGY) on Tuesday forecast organic operating profit growth in 2023…
Read more

Flavour Maker Givaudan Beats Earnings Forecasts in a Tough Year

Swiss fragrance and flavour maker Givaudan on Wednesday reported better-than-expected earnings for a…
Read more
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you. [mc4wp_form id="729"]

Leave a Reply

Your email address will not be published. Required fields are marked *