The latest selloff, which erased almost $12,000 in just a few days, came after the largest digital currency hit an all-time high of $58,000 last week. Institutional investors and other big players are also capitalizing on the BTC price dip.
Bitcoin looks more attractive around $45,000
Making short bets after the cryptocurrency erased more than $12,000 in just four days doesn’t appear like a wise strategy. This is because Bitcoin’s fundamentals look strong, and the latest selloff is mainly blamed on retail investors profit taking strategy. Moreover, a strong adoption rate limits Bitcoin price downside ahead. Tesla (NASDAQ: TSLA) has announced to accept Bitcoin as a valid form of payment, while the Bank of New York Mellon (NYSE: BK) recently presented plans to launch a digital asset division later this year. Indeed, strong critics like JPMorgan Chase (NYSE: JPM) now suggest investors add cryptocurrency into a portfolio.
Recent events added to fundamentals
For instance, MicroStrategy (NASDAQ: MSTR) CEO Michael Saylor, who recently suggested corporate executives add some Bitcoin to their balance sheet, invested another $1.02 billion in cryptocurrency at an average price of around $52,665 per coin. The payment giant Square (NYSE: SQ) had also purchased $170 million of Bitcoins when the digital coin was around $51,236 level. What’s more, the San Francisco-based cryptocurrency exchange Coinbase saw a big purchase of 13,000 coins in Thursday trading, which is the bullish signal if you plan to go long on the digital currency.
