Bitcoin is up 1.4% in the last 24 hours, trading at $19,550 at the time of writing. US stocks rose sharply the day before, and index futures are expanding their profits with the start of European trading. The dynamic environment of the stock market supports the appetite for crypto assets, but the overall fluctuations remain exceptionally subdued.
Bitcoin’s swings since June have been shaped like a triangle with a descending resistance line and horizontal support at $18.8,000, and the price is now moving at the right angle of the pattern. Usually this situation is resolved by a burst of volatility at the exit from the range. Confirmation of the breakdown of long-term consolidation should be sought in the early exit from previous highs at $20.4 thousand or a dip below $18 thousand, with a higher probability of the second option. However, we note that the BTCUSD downtrend has lasted for almost a year, taking away more than 70% of the peak price and becoming attractive to long-term buyers.
According to CoinShares, investment in crypto funds rose slightly last week after a slight outflow in the previous week. The cash inflow was $12 million. Investment in Bitcoin increased by $9 million, while investment in Ethereum decreased by $4 million. Investments in funds that allow bitcoin short positions increased by $7 million. Investors remain apathetic; flows over the past five weeks have not exceeded 0.05% of assets under management, notes CoinShares.
Bitcoin may break the link with traditional risky assets. According to LookIntoBitcoin, this could be due to the fact that investors realized that most of the threats come from governments and fiat currencies. Based on previous rounds of investor capitulation, now is the right time to strategically buy BTC.
According to a global survey of wealth managers conducted by GlobalData, wealthy investors still want to invest in digital assets. And since cryptocurrencies make up only 1.4% of their portfolios, they are willing to take the maximum risk.
French investment bank Societe Generale has received permission from local regulators to store, buy, sell and trade cryptocurrencies.
In the third quarter of 2022, Germany emerged as the most favorable country for doing crypto business, climbing to the top spot with Switzerland, Australia, the United Arab Emirates, followed by Singapore, according to a new report from Coincub. The US dropped from first to seventh place due to unfavorable tax policies and a lack of clarity on crypto regulation.