Bitcoin Back Above $29,000 as Investor Sentiment Suddenly Changes
Last Updated on 6 November 2023 by CryptoTips.eu
Bitcoin has been trading sideways for days after crashing below $30,000 for the first time in months. The top crypto asset even crashed further below $29,000 on 1 August, thus worsening the situation.
In a sudden change of sentiment though, Bitcoin has returned to over $29,000. CoinMarketCap data shows the asset has gained 2% in the last 24 hours. This is a result of a sudden change in investor sentiments.
Massive short liquidation changes sentiments
A significant event happened yesterday and today that has significantly affected Bitcoin’s price. The biggest short liquidation since July 14 just happened, with $27.8 million liquidated yesterday, followed by an additional $13.45 million today, according to data from on-chain analytics platform CoinGlass.
This event must have led to investors having a renewed hope of an upward move for Bitcoin. Another major event that could have caused the price jump is Microstrategy’s recent announcement.
The company announced its intention to conduct stock sales worth $750 million.
As with prior programs, we may use the proceeds for general corporate purposes, which include the purchase of Bitcoin as well as the repurchase or repayment of our outstanding debt.
Said Andrew Kang, MicroStrategy’s CFO
Following the announcement, the Bitcoin community has been in speculation, expecting that the company will make additional Bitcoin purchases which could push the price up.
Bitcoin starts August well
Bitcoin has been trading sideways for a while now, but it seems the asset is starting August on a more promising note. According to on-chain analysis firm Santiment, Bitcoin’s price gain was also aided by “many traders who capitulated during the past week of price declines.”
Santiment also said that trading volume for Bitcoin is on the increase, and has reached the highest level in six weeks.
Meanwhile, some altcoins have done better in the last few days, as sentiments around them change to positive even though the entire market is still in a bearish trend. If Bitcoin continues this trend, the rest of the altcoins may also pick up, putting the market back on the way to a recovery.
