28.09.202115:49 Forex-elemzések és áttekintések: Bitcoin: China's crypto crackdown does not scare investors

The escalating Chinese crackdown on cryptocurrencies doesn't seem to scare Bitcoin investors too much. The latest data shows that they used price cuts to increase their positions.

CoinShares' weekly digital asset funds flow report showed that there was a $50 million inflow in bitcoin investment products. Almost half, 29 million, went to Ethereum products.

Also, over the past week, investors have invested in cryptocurrencies such as Solana (SOL), Cardano (ADA) and Polkadot (DOT). Thus, in the end, investment crypto products received $95 million in inflows over the past week. It is worth noting that this happened against the backdrop of a flight from risk due to the problems of the Chinese developer Evergrande, alarming comments from the SEC and as China further tighten the screws.

The CoinShares report says:

"Bitcoin saw the largest inflows of any investment product, totaling US$50m, although, it has experienced the brunt of negative investor sentiment over the last two quarters. Last week marks only the 4th week of inflows out of the last 17.

Ethereum followed Bitcoin with inflows totaling US$29m last week. Sentiment has remained relatively buoyant for Ethereum as the amount staked to Eth 2.0 progresses."

Institutional investors who cannot buy spot bitcoin have been actively investing in investment products related to the main cryptocurrency all this time. One such fund, Grayscale, the world's largest cryptocurrency asset manager, now manages over $28 billion in BTC assets. Against this background, it was rather strange to hear the statement of Anthony Scaramucci, manager of one of the leading hedge funds Skybridge Capital, that there are no institutions in this market.

There are other, no less interesting on-chain data. The Glassnode report shows that the total volume of bitcoins held by long-term holders reached a record high of 80.5% of the circulating supply.

Holders are not eager to sell coins. During the recent 2020/21 bull market, roughly 12.3% of the circulating Bitcoin supply was accumulated by long-term holders.

But those who bought cryptocurrency recently are in no hurry to get rid of it, says Glassnode.

"We can also see that the relative supply held by short-term holders has reached an all-time low of 20% of circulating supply. This is a rare occurrence that has historically described the late stage accumulation periods of bear markets by the smarter money."

Thus, it is hoped that the main cryptocurrency will be able to stay above the important technical border of the support zone 40,977.38 - 41,980.24. From a technical point of view (and the price includes everything, even what we did not take into account among the fundamental factors), the medium-term forecast remains unchanged for now. If Bitcoin can hold above $40,000 per coin, then there is a chance of rising to $50,000. But the passage of the area 40,977.38 - 41,980.24 from top to bottom and consolidation below it will open the way for a fall to $30,000.

The local technical picture has not changed since yesterday: the BTC/USD price continues to consolidate in the corridor between the support area 40,977.38 - 41,980.24 and resistance 44,807.24 (red dotted line). Therefore, we are waiting in which direction the exit from it will take place.