Bitcoin Above 100K Crypto News Will The Rally Hold?

Bitcoin, after experiencing a sharp sell-off that affected the whole crypto market, managed to make a comeback and surpass again the barrier of US$100,000, a situation that is in line with the regain of confidence from global investors who temporarily muted their risk aversion.The analysts say that the move has meant that the digital assets are back in the playground. The recovery came after a couple of turbulent days in the market, which saw bitcoin hovering around US$99,500 before rebounding. The latest rebound is attributed to two factors, namely, profit-taking, which has exhausted its supply, and fresh institutional buying. The traders view this period as one for a short-term consolidation rather than the beginning of a prolonged downturn. The struggle of Bitcoin continues to pull in long-term investors who are proving its importance as a market indicator.Before bouncing back, bitcoin saw its value dip under US$100,000 for a short time due to global macroeconomic uncertainty. The dollar’s strength and the ever-growing anxiety concerning inflation were the factors that mainly put down the risk assets. Cryptocurrencies, as usual, were moving in sync with the tech and equity market, and so, they, too, fell victim to the market’s sell-off. The investors interpreted the signals coming from the central banks as hawkish and thus, many resorted to short-term selling. Analysts believe that when the leveraged traders were forced to exit their positions, it resulted in a temporary price drop. Conversely, the rapid price jump implies that the institutional buyers have entered the market and are absorbing the supply. This price stabilisation could be seen as the beginning of the end of the correction phase. This is a sign that the long-term investors are very interested in buying. The bounce back to above the six-figure level further strengthens the belief in the cryptocurrency’s market structure. Experts think that if the price is maintained at this level, it could lead to an upward trend again. Institutional investors such as hedge funds and family offices see bitcoin as a good insurance against the risks of the traditional market. If Bitcoin remains strong, it might be the reason for the broad participation in the digital asset market during the next growth cycle.

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