Bitcoin investors ‘buy the dip’ as BTC nears $40K, gaining 16% in less than 24 hours
Buyers returned to the Bitcoin (BTC) market, locating interim upside opportunities as the price rebounded to nearly $40,000 on Feb. 25, gaining 16% in less than 24 hours.
The number of Bitcoin addresses with a balance greater than 0.01 BTC (~$400) reached a record high of 9.51 million, the latest data from Coin Metrics shows. Meanwhile, the number of addresses that hold at least 0.1 BTC (~$3,850) also reached 3.34 million for the first time in history.
On the whole, Bitcoin’s network added a little over 24,500 addresses with a non-zero balance on Thursday, coinciding with BTC’s choppy price moves — from around $37,200 to below $34,500, followed by a recovery toward $40,000.
Data resource Ecoinometrics divided the addresses into two groups — one that holds less than 1 BTC and the other that holds anywhere between 1,000 BTC and 10,000 BTC — noting that both groups have been “buying the Bitcoin dip” and saying:
The prospects of higher inflation may also be rising, with the Ukraine–Russia conflict leading to higher commodity prices globally despite the United States Federal Reserve preparing to tighten policy next month.
But Mohamed El-Erian, chief economic adviser at Allianz, stated that the central bank’s officials would not pursue its aggressive rate-hiking plans amid the worsening geopolitical outlook.
“This takes the 50 basis point [rate increase] completely off the table,” he told CNBC, adding:
GOLDMAN SACHS: THINK GEOPOLITICAL UNCERTAINTY FURTHER LOWERS THE ODDS OF A 50 BPS HIKE IN MARCH
Michael Saylor, CEO of MicroStrategy, commented on El-Erian’s Fed outlook, saying that the ongoing Ukraine–Russia conflict could create inflation and “make Bitcoin compelling.”
Saylor’s firm holds over 125,000 BTC worth aroun $4.84 billion
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