- Matt Hougan of Bitwise asserts that Bitcoin’s likelihood of dropping to zero is minimal due to investor confidence and reduced panic selling.
- Recent volatility has decreased with the emergence of ‘value buyers’, diminishing fears of Bitcoin crashing to zero.
- Despite an 8% price correction, Bitcoin’s robust recovery reaffirms its strong market presence, supported by major financial entities like BlackRock and Fidelity.
- The Seller Exhaustion Composite indicates a decline in selling pressure, hinting at potential market stabilisation and a reversal from bearish trends.
Can Bitcoin ever go back to zero? Not very likely, says Matt Hougan, Chief Investment Officer (CIO) for Bitwise. Taking to Crypto Twitter, he wrote that past pullbacks have been extremely volatile because people started to panic, thinking BTC may go to zero.
But, according to Hougan, that’s now no longer the case, thanks to so-called “value buyers”.
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While still a somewhat volatile asset, the arrival of investors looking for a good entry point means that talks of $0 Bitcoin are a thing of the past, according to the CIO.
That’s now off the table, and there is a growing sea of investors looking for an entry point instead. We haven’t repealed volatility, of course, but I do think we’ve reduced the violence of pullbacks.
Matt Hougan, Chief Investment Officer for BitwiseBitcoin Reaches ‘Escape Velocity’, Says Pantera Founder
Dan Morehead, founder of Pantera Capital, agrees with Hougan’s assessment. Speaking to CNBC’s Squawk Box, he said that “Bitcoin has reached escape velocity”.
He added that yes, it’s still early days to invest in Bitcoin as major financial firms only hold very small amounts. He also said that the chances of it going to zero are now very slim.
50 million people in the US own it, 300 million people globally, BlackRock and Fidelity are selling it. It really has reached escape velocity.
Dan Morehead, founder of Pantera CapitalBitcoin reached a new all-time high of US$99,655.50 (AU$153,409.06) on 23 November, and corrected to US$91,171 (AU$140,356), an 8% drop in just one day. The top crypto has since recovered some of these losses, trading for US$95,931 (AU$147,691) at the time of writing.
Glassnode Metric Reveals Potential Shift in Sentiment
Analysts from Glassnode reported a notable event in the weekly Seller Exhaustion Composite for Bitcoin, specifically signalling seller exhaustion.
Our Seller Exhaustion Composite for #Bitcoin just flashed a signal on the weekly timeframe. This reflects high locked-in losses from #BTC traders active in the last month.
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This might push traders to finally sell off their positions to avoid further losses, reducing overall selling pressure. Such conditions typically precede a market stabilisation or trend reversal, suggesting a potential shift in market dynamics as bearish trends may be nearing an end, potentially setting the stage for a lasting price recovery.
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