🌎 Bitcoin Price Stability Reduces Panic Selling Risk

Bitcoin’s Stability Above $90,000 Reduces Panic Selling Risk

With Bitcoin maintaining its price above $90,000, analysts at Matrixport, a Singapore-based blockchain firm, believe that the risk of panic selling is minimal. This is because the vast majority of Bitcoin investors are currently in profit, reducing the likelihood of panic selling as long as the cryptocurrency remains above this threshold.

As trading volumes have skyrocketed, jumping from $40 billion to nearly $400 billion at times, more investors are jumping into the market. This trend is expected to continue driving adoption in 2025, according to Matrixport.

Key Factors Influencing Bitcoin’s Price

While the increase in trading volumes is a positive sign, it’s worth noting that these increases tend to happen when prices and market capitalization rise. Additionally, the growing dominance of institutional players is gradually reducing retail traders’ influence and reshaping market dynamics.

Analysts have also noted a decline in weekend trading volumes, attributing it to the fact that institutional players primarily trade on weekdays. This shift is expected to continue, potentially changing the dynamics of the market.

Bitcoin’s Next Move

Despite market turbulence, Bitcoin has been holding strong above $96,000. However, not everyone is convinced that things are looking up. The Inter-exchange Flow Pulse indicator, which tracks Bitcoin moving between spot and derivatives markets, is currently flashing bearish, suggesting that Bitcoin might hit more resistance before it can break out.

Some key points to consider when analyzing Bitcoin’s next move include:

Price stability**: Bitcoin’s ability to maintain its price above $90,000 is crucial in reducing the risk of panic selling.
Institutional influence**: The growing dominance of institutional players is changing market dynamics and potentially reducing retail traders’ influence.
Market indicators**: The Inter-exchange Flow Pulse indicator is currently flashing bearish, suggesting that Bitcoin might hit more resistance before it can break out.