On January 29th, the price of Bitcoin (BTC) rose briefly to $ 38,500 before tracking the pace and spending most of the day trying to raise $ 35,000.
The sharp jump in Bitcoin’s price is partly attributed to Elon Musk changing his Twitter profile to only “#Bitcoin”, after which Musk later wrote a cryptic tweet saying, “Later, this was inevitable.”
Dogecoin (DOGE) also continued to make a buzz on Twitter and among cryptocurrency traders. After reaching a new full-time high of $ 0.078 on Jan 28, DOGE corrected 41% and then recovered to $ 0.045.
Developments related to DOGE and r / Wallstreetbets led FTX to create the Wall Street Bets (WSB) index, which tracks prices for Nokia (NOK), BlackBerry (BB), AMC Theaters (AMC), GameStop (GME), Silver (SLV) and DOGE and FTX token (FTT) using price weighted average.
The exploitation of the famous Reddit group also did not go unnoticed by the US Securities and Exchange Commission, which announced that it would take a closer look at how Robinhood handled trading GME shares on its platform.
Bitcoin price remains high despite mining sales
Despite the recent volatility, institutional investors continue to show increased interest in bitcoin and are willing to pay a premium to access bitcoin futures contracts on the Chicago Mercantile Exchange.
Even the pressure from Bitcoin miners, who sold at levels not seen since BTC peaked at $ 14,000 in July 2019, failed to meet the growing demand. Unlike in previous years, massive mining does not negatively affect Bitcoin’s price in the long run, as shown by CryptoQuant Data.
According to Lennard Neo, head of research at Stack Funds, the current mining sales are likely to continue in the near future with the upcoming Chinese New Year.
“Miners are increasingly leaving their jobs as the holiday season approaches. He also indicates that the minimum price that miners feel comfortable holding in Bitcoin has not yet been determined, and we expect this volatility to continue in the coming weeks.”
The growing interest from organizations and the emergence of DeFi are the main drivers of Bitcoin’s price growth. As the market approaches the Chinese New Year holiday, the key level of support is now at $ 34,000, while the uptrend is likely to encounter resistance at $ 38,000.
The $ 4.9 billion BTC futures contract which expired on January 29 appears to have had little impact on the market as Robinhood’s lawsuit last week draws more attention to the cryptocurrency industry.
The traditional markets faced a new wave of pressure, which led to the worst weekly reading of the S&P 500. The Dow, NASDAQ and S&P 500 ended the day in negative numbers, at 2.03%, 2.0% and 1.93%, respectively. .
Altcoins show signs of growth
While Bitcoin’s price struggled to maintain the $ 34,000 level, DOGE broke through the top ten, and a number of altcoins showed bullish rallies.
XRP and Stellar (XLM) are up about 9% in the past 24 hours, while Voyager Token (VGX) has continued to increase, currently rising 70% and trading at $ 1.77.