Bitcoin (BTC) has shown some increased volatility in recent days. The price of the virtual currency fluctuated between $10,050 and $10,800, during the last week. This volatility for the virtual currency could be related to the strong interest of a wide range of market participants.
Bitcoin Volatility Shows Interest for the Cryptocurrency
The recent volatility that the crypto market has experienced is showing there is a growing interest from participants in the asset. According to Konstantin Anissimov, Executive Director at CEX.IO, the upswings that we have been observing during the last month show that investors are searching for good opportunities in the crypto space.
On the matter, he commented during a conversation with UseTheBitcoin:
“The recently observed volatility in the Bitcoin market indicated strong interest of different market participants in the asset. With the recent news of Microstrategy buying into Bitcoin, the upswings that have been observed this September clearly show that high-net-worth investors and funds are not ready to miss upon good buying opportunities.”
He went on saying that it may be possible for Bitcoin to move again above $11,000 in a relatively short time if the volatility continues in the crypto market. Currently, the Bitcoin price is close to $10,750, as reported by CoinMarketCap. The largest virtual currency has also a market valuation of $198 billion.
It is worth pointing out that MicroStrategy has bought $175 million in Bitcoin in recent weeks. This increases the BTC position of the company to $425 million that are placed in the cryptocurrency market. These investments made by large corporate firms are helping the largest virtual currency keep its price above $10,000.
This price level ($10,000) has been working as a resistance in the past and as support in recent months. This shows investors are bullish about the future of Bitcoin and cryptocurrencies. Nevertheless, it is worth taking into consideration that Bitcoin and the crypto market have been following traditional financial markets in recent months.
Thus, Bitcoin and digital assets could behave in a similar way to stocks and other traditional financial markets. The Coronavirus crisis has pushed investors to treat Bitcoin as a traditional investment rather than as a store of value or a means of payment.
The main question remains whether Bitcoin will be able to move towards new highs in the next months or if it would remain close to the current prices.