Bitcoin price may be fuelled by a volatile Turkish lira

Posted: 22 December 2021 5:35 pm

In the wake of Turkey's local currency lira gaining 40% value against the US dollar, the market cap of the crypto sector has risen by 3.6%.

  • Pro derivative traders as well as long-term investors are actively increasing their BTC positions despite regulatory fears looming large on the horizon.
  • The Crypto Fear & Greed index has continued to hover in the "fear" zone over the past week.
  • A dormant wallet containing 321 BTC recently became active after 8 years.

After having remained stuck around the AUD$65,000 range for a few days running, Bitcoin, the world's largest cryptocurrency by total market capitalisation, has been on a path of upward ascent over the last 24 hours, showcasing a daily profit ratio of around 4%. At press time, BTC is trading at a price point of AUD$68,528.

The ongoing volatility seems to be spurred by the fact that inflation levels in the US recently touched a 30-year high as well as news of China-based real estate giant Evergrande recently defaulting on its AUD$26.8 (US$19.2) billion debt. These events seem to have impacted both the crypto market and the broader market structure, with the stock and commodities sectors taking a massive hit as well.

Even though Bitcoin's value has dipped by nearly 15% since the start of the month, pro traders operating across premier exchanges such as Binance, OKX and Huobi have continued to increase their leveraged long positions in relation to the flagship crypto. Even top traders on various derivatives exchanges have doubled down on their longs despite the digital asset showcasing a growing amount of turbulence.

Providing his take on what lies ahead for Bitcoin, independent crypto analyst Michaël van de Poppe tweeted that there was a good chance that Bitcoin's ongoing price correction had finally come to an end and that the Turkish lira's recent 40% price increase against the US dollar would help provide a much-needed boost to the crypto economy.

A quick look at the Crypto Fear & Greed index shows that despite the overall bearish mood surrounding the market, investors seem to once again be regaining confidence in this industry, with the overall sentiment rising from extreme fear to fear over the last couple of days.

How to buy Bitcoin

Dormant BTC account becomes active suddenly

According to blockchain data tracker Whale Alert, a Bitcoin wallet touted to be worth more than US$15 million has recently become active once again. The account was last used back in 2013, just a few years after Satoshi Nakamoto, the pseudonymous creator of Bitcoin, permanently vanished into cyberspace.

Over the last 8 years, the value of BTC contained in the wallet has risen from around US$6,500 to more than US$15 million, representing a gain of nearly 2,350 times.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Disclosure: The author owns a range of cryptocurrencies at the time of writing.

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