On January 20th, Bitcoin is trading at a range of $20,600 to $21,650. The reason for its winning streak might be linked to the fact that the market reached its greatest level of investor confidence since July. Meanwhile, institutional investors are the key drivers of the demand for Bitcoin.
Data released by the crypto analytics firm Santiment shows that the trading crowd's sentiment has reached its highest level in the last six months and its second-highest level of bullish sentiment in the last 14 months.
On the negative side, institutional cryptocurrency brokerage Genesis Global Capital is preparing to file for bankruptcy. This was considered to be a significant element in keeping the lid on any more gains in cryptocurrencies.
It's important to note that Genesis is now holding confidential conversations with a number of creditors.
The firm has since issued a warning that it could potentially file for bankruptcy. Bitzlato Ltd., a Miami-based digital marketing agency, is charged with money laundering by the US Justice and Treasury Departments.
In addition, Founder Bitzlato got arrested in Miami and this was perceived as another unfavorable element that has been capping the gains in the value of cryptocurrencies, including Bitcoin.
Another factor that was hurting the cryptocurrency market was the hawkish remarks made by a number of Federal Reserve officials, as well as mounting worries about a possible recession this year.
It should be noted that the number of COVID-19 cases in China has risen, raising concerns about its near-term economic prospects. This, combined with the possibility of a worldwide recession this year, is now priced in by the markets, particularly if the Fed keeps raising interest rates.
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