- Deutsche Bank analysts expect the top cryptocurrency to turn into 21st century gold.
- Institutions continue to inject capital into BTC as filings with BlackRock SEC show a profit of $ 369,000 from investing in BTC futures.
- Almost $ 5 billion worth of BTC was liquidated along with the drop in open interest.
Average social sentiment on Bitcoin is predominantly bearish, according to analysis of more than 1,000 cryptocurrency-related social media channels by crypto intelligence platform Santiment. The asset’s social dominance has fallen to its lowest point, suggesting that there is room for the price to rebound.
Bitcoin is set to make a comeback in Q4 2021
Marion Laboure, a market strategist at Deutsche Bank, believes that Bitcoin could potentially become the gold of the 21st century.
According to the strategist, the asset’s volatility has hampered its acceptance as an effective store of value. She expects the asset to remain volatile for the foreseeable future.
I see basically three reasons for this: First, about two-thirds of Bitcoin is used for investment and speculation purposes. Second, due to their limited tradability, some additional major purchases or exits from the market can have a significant impact on the balance between supply and demand. Third, the value of Bitcoin will keep going up and down based on what people think it is worth.
Gold was historically volatile, therefore the analyst compares Bitcoin to the precious metal and states:
You could potentially see Bitcoin become the digital gold of the 21st century.
Pseudonymous cryptocurrency analyst @inmortalcrypto on Twitter is convinced that the recent crash in Bitcoin is the last in history.
The analyst is convinced that Bitcoin has been holding low amid mounting macroeconomic pressures, suggesting that the asset is poised for a future price spike.
The analyst tweeted:
If you ask me, the fact that $ BTC hasn’t gone down in FUD despite everything is a good sign. Pick up 45k and I’ll upgrade it to a new ATH.
The current drop in asset prices that the analyst discusses here has been accompanied by lower open interest rates and massive liquidations. The open interest of BTC, or the total number of futures contracts held by market participants at the end of a trading day, is considered a useful indicator for measuring the demand for BTC among traders.
Open interest has been stable after falling almost 40% in recent weeks. Almost $ 5 billion in BTC positions have been liquidated, although the number is now declining. This implies that there is room for vertical price growth in the fourth quarter of 2021.
Historically, institutional interest has raised the price of the asset. Analysts expect to see the same starting in October 2021.
A recent filing with the Securities and Exchange Commission (SEC) from BlackRock Financial Management, a company that manages $ 9.5 trillion in assets, shows that the institution earned $ 369,137 in Bitcoin futures contracts that expired on August 27, 2021.
Netcost-Security analysts priced the asset and predicted that a drop below $ 40,000 could trigger a further decline. If the price of BTC continues to rise, traders can avoid further losses.