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Bitcoin Rebounds to $38K, Here's Who Is Buying BTC

Fri, 02/04/2022 - 10:01
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Tomiwabold Olajide
Bitcoin recovers to $38,000 as buying pressure increases from holders
Bitcoin Rebounds to $38K, Here's Who Is Buying BTC
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As per the TradingView chart, Bitcoin returned above $38,000 on Feb. 4 after a near 6% drop on Feb. 2. Bitcoin's selling pressure had diminished as it attained intraday highs of $38,234 on Feb. 4 after the prior day's rebound.

BTC/USD Daily Chart, Source: TradingView

According to CoinMarketCap data, the first and largest cryptocurrency was changing hands at $38,005, up 2.22% at the time of writing. In the broader cryptocurrency market, most alternative cryptocurrencies (altcoins) were trading in the green at press time. Ethereum, the largest altcoin was trading at over $2,831, up 5.87%. According to CoinMarketCap, the majority of altcoins gained between 3% and 8% in the last 24 hours.

Here's who is buying Bitcoin

The Crypto Fear and Greed Index that measures market sentiment remains in ''extreme fear,'' suggesting that traders are still fearful.

IntoTheBlock analytics notes that short-term speculation seems to have faded from the market as the number of BTC traders/addresses holding for less than one month has decreased by 32.07% since Dec. 28. It notes that the buying pressure is now coming from medium- and long-term holders who have been accumulating at recent prices.

In the early hours of Friday, markets were calm as investors awaited the release of key U.S. jobs data that could impact the Federal Reserve's aggressive monetary policy stance. Last month, the Federal Reserve hinted that it would raise interest rates for the first time in more than three years.

The yield on the benchmark 10-year Treasury note has surged to 1.838%, indicating that Treasury yields are rising. The 30-year Treasury bond rate also increased to 2.157%.

The European Central Bank had already indicated that interest rates would remain constant, acknowledging that inflation would likely continue higher for longer than originally anticipated. Meanwhile, the Bank of England raised interest rates for the first time since 2004 and kickstarted the process of quantitative tightening.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.