On January 27, the price of the first cryptocurrency fell below $30,000 amid a sharp surge in trading volume (on Bitstamp). However, the quotes soon rebounded to levels above the psychological threshold.
Data: Bitstamp.
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At one point, the price fell to $29,150. At the time of writing, the asset was trading around $30,600.
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#bitcoin < $30k pic.twitter.com/0H7llcCKcu
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— skew (@skewdotcom) January 27, 2021
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In the night of January 22, quotes had already fallen to the level of $28 800, but by the week’s end the cryptocurrency had held the round figure. Yet back then, experts did not rule out another drop.
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CryptoQuant CEO Ki Young Ju drew attention to the “Coinbase Premium Index,” which during the rally surpassed 50, and on Friday dropped below -122. In his view, this signals selling of the cryptocurrency by large investors. While previously CryptoQuant chief was confident that whales would not permit the price to fall below $30,000 because many had invested at nearby levels, with such a reading he admitted a deeper drop.
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Coinbase premium just hit -122
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Chart: https://t.co/RpcUEnGxB6 https://t.co/osn5c9g0Km pic.twitter.com/sf8yBs68m4
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— Ki Young Ju 주기영 (@ki_young_ju) January 22, 2021
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a notable decline in the premium to GBTC’s share price over the last month — from 38% to below 3%. In their view, this signals a liquidation of the Bitcoin-based investment instrument by institutional investors, the main buyers of the trust’s shares.
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Today’s drop, Ki Young Ju described as “a small slip” — “Coinbase Premium” rose to 67, signaling bullish sentiment.
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It seems Coinbase whales are starting to buy $BTC. Now Coinbase Premium is +$66.
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Punted a small long here.
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Chart 👉 https://t.co/aAqM0FsxS4 https://t.co/5SRPVXa1Yv pic.twitter.com/fIMSZddVQ4
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— Ki Young Ju 주기영 (@ki_young_ju) January 27, 2021
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Earlier, Guggenheim Partners investment chief Scott Minerd predicted BTC would fall to the level of $20 000. He said the peak in market value this year occurred on January 8.
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