CRYPTO VOLATILITY

Build up of short term Bitcoin liquidity & volatility points to profit-taking

Bitcoin investors who have held the asset for less than one month and have realized 25%+ gains are booking their profits

It’s been a roller coaster ride for the past week or so in the Cryptoverse. And although this is something that we have to come to expect from the digital assets, there is always an underlying theme when the volatility picks up in any digital financial asset. The recent bout of volatility comes at the back of the recent Bitcoin high of $41,965. It wasn’t long after that BTC fell to a low in the region of $30k. No wonder it is often argued that crypto investing is not for the faint of heart.

Taking advantage of the 25%+ dip, Big bitcoin investors or the ‘Whales’ swooped in to add to their already huge positions. The dip-demand from institutional investors suggests that large investors expect the pullback to be short-lived. Whale address numbers have increased by nearly 25% year on year and have risen by 200 in the past two weeks. Data suggests that weak hands and/or retail traders liquidated their holdings.

The renewed demand for Bitcoin at the dip saw the price jump back up to $40k making a lower high. The tug…