- Bitcoin price holds above $66,000 after FOMC, inspiring an altcoin awakening.
- If BTC reclaims $69,000 decisively, it could record a new all-time high above recent $73,777 peak.
- March 22 is the inaugural Bitcoin Investor Day in NYC, bringing together sophisticated Wall Street investors interested in BTC.
Bitcoin (BTC) price could record volatility as investors come together on Friday in New York to discuss the future of BTC. Speculation, sentiment and optimism inspired by the event could bode well for the pioneer cryptocurrency, as explained below.
Also Read: Bitcoin price could hit a new ATH, but there’s a caveat to this bounce
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Inaugural Investor Day could send Bitcoin parabollic
As Bitcoin price continues to enjoy buoyancy inspired by the Wednesday FOMC, Wall Street is preparing for the Inaugural Bitcoin Investor Day to be held in New York City. Hosted by leading research firm Reflexivity Research, Anthony Pompliano will moderate the event, which is advertised as an annual meeting for sophisticated Wall Street investors interested in Bitcoin.
Guests will comprise institutional investors, capital allocators, and entrepreneurs, coming together for networking opportunities and insightful discussions around the future of Bitcoin. The event could drive up Bitcoin price because of new perspectives gained among investors, as well as increased capital inflow from institutions.
Some investors may speculate on the price movement of Bitcoin leading up to, during or after Bitcoin Investor Day. This speculative activity could result in short-term price fluctuations in either direction. However, if the Bitcoin Investor Day results in positive sentiment and optimism about the future of Bitcoin, it could translate into higher buying activity and push the price of Bitcoin higher.
Nevertheless, the dwindling spot BTC exchange-traded funds (ETFs) inflows continue to impede the rally north for Bitcoin price. According to Eric Balchunas, an ETF analyst at Bloomberg Intelligence, Grayscale’s spot BTC ETF, GBTC, has recorded up to $1.4 billion in outflows this week, marking the second wind of outflows.
$GBTC getting a ‘second wind’ of outflows, $1.4b this week along, now double any other ETF in outflows YTD and have set record for cumulative outflows for any ETF in history. All that and they STILL rank 3rd overall (out of 3,400 ETFs) in annual revenue generated. https://t.co/HitMwpu7dR
— Eric Balchunas (@EricBalchunas) March 21, 2024
Nevertheless, he acknowledges that beyond ETFs, there are other players controlling the market as well.
Meanwhile, Alex Svanevik, CEO of Nansen, told FXStreet, “Smart money stablecoin holdings as a percentage of their portfolios have dropped to 5%, a level not observed since February 11, 2021.” This decline suggests increasingly bullish sentiment among institutional investors.
Moreover, the most substantial adjustments in smart money portfolios reveal a consistent trend toward tokens such as Pepe (PEPE), Yearn Finance (YFI), Singularity Net (AGIX), Fetch.ai (FET) and Fantom (FTM), among others. This signals evolving investment strategies and emerging opportunities.
Bitcoin price outlook as BTC proponents gather in NYC
Bitcoin price is trading with a bullish bias and prospects for more gains as the weekly Relative Strength Index (RSI) displays higher highs. The Moving Average Convergence Divergence (MACD) is also in positive territory, adding credence to the bullish thesis.
Increased buying pressure could see Bitcoin price restore above the $69,000 threshold. A weekly candlestick close above this level would set the pace for a continuation of the primary trend, with BTC price likely to clear the $73,777 all-time high and record a higher peak around the $74,000 range. This would constitute a climb of around 10% above current levels.
BTC/USDT 1-week chart
Conversely, if profit-booking continues, Bitcoin price could drop, falling into the supply order block between $57,673 and $65,656. In a dire case, the slump could send BTC to the weekly imbalance, extending from $52,985 to $59,005 before a possible move north.
