Binance bought around 101,266 Bitcoins as the Bitcoin price hit its lowest level this morning. The price of the world’s largest cryptocurrency is trading at yearly lows.
Bitcoin is recovering, will it be successful?
On Saturday, all the leading coins/tokens in the crypto market suffered a massive drop. Bitcoin price dropped to $19,000, recording the lowest price of the year. Along with BTC, Ethereum also saw a sharp drop. Meanwhile, its total market capitalization hovers below $1 trillion.
Binance buys Bitcoin amid crash
The world’s largest crypto exchange has bought around 100,000 BTC, while the overall market cap has dropped to 2020 levels. Binance used a Bitcoin wallet numbered 44434365 for this transaction. According to data from Bitinfocharts.com, this is a cold wallet. The wallet now holds about 353,863 BTC. The total value of the wallet is approximately $7,025,905,968. At the time of writing, the wallet has 335 unspent BTC.
According to on-chain data, this Bitcoin wallet has been active since December 8, 2017. It holds about 2% of the total Bitcoins mined so far.
Liquidity rises as a result of Binance acquisition
This transaction increases the liquidity of Bitcoin with the exchange. According to Coinmarketcap data, the total liquidity between the two goes up to 874. However, the latest transaction isn’t the first time Binance has bought BTC on the decline. Prior to that, the exchange had withdrawn around $43,000 in Bitcoin to its wallet in January.
Bitcoin is going through a tough time in the market this week. BTC saw a roughly 28% drop in its pricing in 7 days. At the time of writing, Bitcoin has seen an almost 35% increase in trading volume in the last 24 hours. Currently, there is a 24-hour trading volume of $40,664,716,880, data from Coinmarketcap. After the last purchase by the exchange, a slight increase was noted in the Bitcoin price as well. Now the Bitcoin price has gained almost 4% in the last 24 hours. At the time of writing, it is trading at $19,710.75 on Binance.
What are analysts saying about Bitcoin?
We can set aside Bitcoin’s plight for now. On the other hand, there are a few prominent names who still believe that a rally is in question. As we reported on Kriptokoin.com , Galaxy Digital CEO Mike Novogratz sent a very optimistic message to the entire crypto community. He believes current market conditions are holding Bitcoin back, but it will eventually improve. Novogratz says:
I think there are people waiting one hundred percent on the sidelines. But I actually think the first buyers in the traditional sense would be the big global macro hedge funds. The moment the Fed gets scared, you’ll find that many traditional macro funds, which had a great year, are buying Bitcoin. At that point we will add it to our position.
On the other hand, Nexo co-founder Antoni Trenchev repeated his “$100k” stance on Bitcoin in an interview with Bloomberg. The analyst used the example of 2020, where Bitcoin faced strong bearish winds but managed to recover from a widespread bullish streak. As a result, Trenchev draws the following conclusions:
The last time we experienced this type of volatility in Bitcoin, when it fell by 50% intraday was in March 2020. Apart from these levels, it increased 10 times and reached the level of $ 50,000. So, after the industry has been leveraged and hedging, I think we will be back in a widespread bull market. The chances of us seeing a relief rally are very high here, but it also depends on how the overall at-risk assets are performing. You can’t let the S&P500 drop 3% on the day and expect a massive rally in Bitcoin.
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