Bitcoin recovers $39,200 and altcoins rise up to 13%
This day, in addition, the number of Bitcoin addresses with a balance greater than 0.01 BTC ($ 400) reached a record 9.51 million, as the latest data from CoinMetrics shows, Cointelegraph reported. Meanwhile, the number of addresses holding at least 0.1 BTC ($3,850) also hit 3.34 million for the first time ever.
Bitcoin price rallying above $39,000 leads traders to say “the panic is over for a few days”.
What can happen?
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Overall, the Bitcoin network added just over 24,500 addresses with a non-zero balance on Thursday, coinciding with BTC’s choppy price movements from around 37,200 to below $34,500, followed by a recovery. up to nearly $40,000.
The data resource Ecoinometrics divided the addresses into two groups: one that has less than 1 BTC and the other that has between 1,000 BTC and 10,000 BTC, noting that both groups have been “buying the drop in Bitcoin,” he said. “It’s probably a smart move if you have a long-term investment horizon.”
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The prospects for higher inflation may also be increasing with the conflict between Ukraine and Russia, leading to higher global commodity prices despite the fact that the US Federal Reserve is preparing to tighten policies next month.
But Mohamed El-Erian, Allianz’s top economic adviser, said central bank officials would not go ahead with their aggressive rate-hike plans amid worsening geopolitical prospects. “This completely eliminates the 50 basis point (rate increase),” he told CNBC, adding:
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“This eliminates the 8-9 hikes that were being talked about for this year. I don’t think the US economy can accommodate such a monetary policy slowdown. It means the Fed is going to have to be even more careful and tolerate inflation.” “.
Michael Saylor, CEO of MicroStrategy, commented on El-Erian’s Fed outlook, adding that the ongoing conflict between Ukraine and Russia could lead to inflation and “make Bitcoin compelling.” Saylor’s firm has more than 125,000 BTC worth approximately $4.84 billion in its treasury, according to Bitcoin Treasuries.
Despite Saylor’s bullish outlook, which came after Bitcoin’s intraday bounce towards $40,000, the market’s Fear and Greed Index score turned out to be 27, showing unease among short-term investors/traders.
Nick, an analyst at Ecoinometrics, also noted that Bitcoin price could see a price correction below $30,000 despite having a strong long-term bullish outlook. The reason cited is the imbalance between bearish and bullish positions in the Chicago Mercantile Exchange (CME) Bitcoin options market, biased more towards the former.