Bitcoin and altcoins are starting to recover, but traders will watch closely to see if higher levels induce selling.
Bitcoin (BTC) nosedived below the $61,000 level on March 19, signaling an urgency by select traders to exit their positions. According to data from investment firm Farside, the recent fall has led to roughly $480 million in outflows from the spot Bitcoin exchange-traded funds (ETFs) in the past two days.
If the Bitcoin ETF investments fail to pick up, another round of selling cannot be ruled out, but a fall does not mean the bull market is over. Capriole Fund founder Charles Edwards said in a X post that it’s “normal” for volatility to pick up one month “either side of the Bitcoin Halving.” However, he added that the 12-month period following the halving historically offers the best risk-reward tradeoff for Bitcoin.
While retail traders speculate on the next move in Bitcoin, MicroStrategy, one of the largest public holders of Bitcoin, continues to buy more. MicroStrategy Executive Chairman Michael Saylor said in a X post that the firm bought 9,245 Bitcoin “using proceeds from convertible notes & excess cash.” The latest purchase boosted the firm’s stockpile to 214,246 Bitcoin, more than 1% of the 21 million Bitcoin that will ever exist.