Bitcoin expects to extend its predominant bull run in the coming sessions once the US launches another massive spending program, including direct payments to its citizens, which can receive up to $ 1,400 per person depending on income and tax returns.
The prospect of the flagship cryptocurrency of new highs rose after a survey by Deutsche Bank of online brokerage users found that private investors would use 35 percent of their economic advantages to invest in the stock market. Jim Reid, research strategist at Deutsche Bank, confirmed that young, aggressive cohort investors would place riskier and overfunded bets to increase their potential profits and losses.
While the Germans’ poll didn’t include questions related to Bitcoin, the likelihood that the cryptocurrency would cut stock market profits against the government’s stimulus packages over the course of 2020 increased the possibility of another uptrend. Mike Novogratz, CEO of Galaxy Investment Partners, told CNBC in an interview that he expected retail investors to provide some of their stimulus checks to buy Bitcoin.
“Many of the stimulus checks go to young people who want to buy Bitcoin“, Said Mr. Novogratz. “What happens over the weekend is that retailers are excited because leverage costs go up significantly over the weekend.”
Attack Gemini FUD
Bitcoin hit a new record high of over $ 61,000 on Saturday, the day after President Joe Biden signed a $ 1.9 trillion stimulus package after being approved by Congress and the Senate. Even so, the cryptocurrency failed to expand its upward momentum earlier this week as panic raged, led by news that a whale had deposited $ 1 billion worth of BTC into its Gemini wallet.
As NewsBTC reported earlier, traders interpreted the large transfer as a sign that the whale would dispose of its bitcoins. This sparked a frenzy of selling in the market that caused the BTC / USD exchange rate to drop as much as $ 4,404 at one point.
Bitcoin is down 9 percent from its record high. Source: BTCUSD on TradingView.com
Bitcoin to ATH?
Some analysts later classified the Gemini news as misleading. On-chain data specialist Willy Woo found that the data, which showed an enormous transfer of funds between two Bitcoin wallets, was “wrong”. Instead, he blamed a long squeeze-like event for the fall.
“Markets are selling on fake data that says there is $ 1 billion of BTC flowing into Gemini,” he noted while providing a chart from Glassnode. “It’s the second time in the last 30 days. Graphic: Leverage positions are liquidated when traders are sold out. Red dots indicate the time of the wrong inflows. (28,000 or 18,000 BTC). “
Bitcoin: Futures Long Liquidations. Source: Glassnode
“The reported transactions were internal,” Glassnode said in a separate tweet. “This is money that was already in the wallets of the exchange and was simply transferred internally.”
Bitcoin rebounded 2.31 percent after the clarification, with analysts expecting the bull run to rise again to a new high.
“Due to the possible launch of the $ 1.9 trillion stimulus package from the US, the coin is expected to rise above this ATH price level in the coming weeks,” Konstantin Anissimov, executive director at CEX.IO, told NewsBTC in an E -Mail statement.
“This upward trend will be based on monetary inflation, which will push both retail and institutional investors into the asset class,” he added.