Analysts say goodbye to the alt season as the traders rotate back to Bitcoin after a $30K reset. However, the short-term investment case for BTC remains intact on the prospects of rotational trading from the altcoin markets.
BTC Market
The BTC market bias stands divided on how to interpret the Bitcoin price crash of this week. The pair has lost more than 35% of its value at one point on Wednesday. This happened as the crashing has gone as deep as $30,000 on Coinbase.
Global Media Outlets
All the Global media outlets attributed this plunge to China. China reiterated its anti-Crypto business stance.
Tesla
In addition, Tesla also suddenly discontinued Bitcoin payment for its electric vehicles.
Nicholas Panigirtzoglou
Nicholas Panigirtzoglou is the Managing Director for global market strategy at JP Morgan. He further noted an ongoing decline in the capital that flows into publicly listed Bitcoin funds. In addition, he suspected a rotational investment setup.
Here, all the institutional investors started winding up their positions in the Bitcoin futures market. They further started reallocating the proceeds to build long positions in the gold funds. He further stated that it is not clear about the factors driving this shift.
In addition, he said that perhaps the institutional investors are fleeing Bitcoin as they see its previous two-quarter uptrend ending. Thus, they seek the stability of traditional gold away from the rapid downshifting of digital gold.
He also reminded that the Bitcoins Momentum signals remain in positive territory. So, finally, it is too early to declare the end of the bull market.
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