Bitcoin (BTC) has experienced a significant correction this week, retracing over 10% from its all-time highs above $124,000. Despite this downturn, many remain optimistic about the cryptocurrency’s potential for further gains in the coming months.
DeFitracer suggested that Binance might be utilizing a market maker, Wintermute, to strategically execute trades, thereby creating a bearish trend that retail investors might follow. This strategy could allow Binance to profit from liquidations in the futures market.
Although Bailey did not disclose the identities of the whales involved, he indicated that one is already “down,” while the other is halfway to a similar fate.
This could suggest that once these sell-offs conclude, the Bitcoin price could regain its momentum, potentially reaching Bailey’s target of $150,000 per coin, which would signify a substantial 36% increase from current price levels.
In addition to the alleged whale activity that has suppressed Bitcoin’s uptrend, the growing involvement of publicly traded companies in the cryptocurrency market is impacting its price stability.
The analyst noted that the surge in Bitcoin purchases by corporate treasuries has led to a decrease in the cryptocurrency’s volatility, which could ultimately make the asset more appealing to investors.
He suggests that this influx of institutional investment may reshape the landscape of Bitcoin ownership and trading, as reduced volatility can enhance BTC’s attractiveness as an investment alternative, particularly in comparison to gold.
As of this writing, the leading cryptocurrency is trading at $110,900. This represents a slight 2% surge in the last 24 hours and a 90% increase year-to-date.
Featured image from DALL-E, chart from TradingView.com
