Key Points
- Bitcoin’s price volatility continues to concern investors despite market optimism.
- Contrasting views exist on the “buying the dip” strategy, with some predicting a drop to $50K.
Bitcoin’s price trajectory is a cause for concern among investors, despite some market optimism and rumors of the cryptocurrency potentially reaching the $70K mark.
Investor Sentiment
Investor sentiment is divided on whether to buy the dip. Anthony Pompliano, in a conversation with Fox Business, expressed his belief that Bitcoin is a resilient asset that will be worth more in the future. He sees dips as buying opportunities.
A similar sentiment was echoed by the Bitcoin for Freedom account, stating that those scared by the dip need to study Bitcoin more. This has led to a resurgence of the “buying the dip” strategy among traders and investors.
Contrasting Views
However, not everyone shares this optimistic view. Markus Thielen, CEO of 10x Research, suggested that the current timing might not be ideal for such optimism. He claimed that price declines could accelerate as support gets broken and sellers scramble to find liquidity. He predicted a sharp decline to the low $50,000s.
At press time, Bitcoin was trading at $57,730.17, marking a 4% drop in the past 24 hours. Spot Bitcoin Exchange Traded Funds (ETF) recorded an outflow of $20.5 million on the 3rd of July. However, IntoTheBlock’s data showed no clear dominance of either side, indicating no significant buying or selling pressure.
In the first three days of July, inflows to BTC ETFs outpaced outflows. On the 1st of July, BTC ETFs recorded inflows worth $129.5 million, significantly higher than the combined outflows of $34.2 million on 2nd and 3rd July. This shows signs of improvement as Q3 began, despite June seeing maximum outflows for BTC ETFs.
