The price of bitcoin has dropped by 43% from its all-time high. However, in recent days, the cryptocurrency has been trading in a sideways market, hovering around $40,000.
Bitcoin has declined more than 1% in today’s trading session, and it is now trading below $39,000.
The largest cryptocurrency by market cap had continued to rise after a clear move above $39,500 and the price even broke through the $39,800 resistance level.
The bulls were able to drive the price beyond $40,000, but they were unable to maintain their pace.
Investors are doubtful that BTC would correct to $30,000 if the sell-off in the US share market continues. Willy Woo, a well-known market expert, points out that institutional players have been buying up supplies at every opportunity.
“BTC price holding up well while equities tank and USD Index moons is testament to the unprecedented spot buying happening right now”, writes the market watcher Woo.
In other words, BTC is already viewed as a safe haven by investors; but, it will take time for the price to reflect this.
Institution Interest Increases
As the asset class grows, institutional investors have become more interested in Bitcoin. In response to increased client demand, some of the most prestigious Wall Street banks have begun to offer Bitcoin-related products and services.
Billionaire investors like Ray Dalio have previously spoken about Bitcoin and why they should commit a modest portion of their portfolio to BTC as a hedge. Goldman Sachs, a Wall Street giant, began issuing Bitcoin-backed loans to clients on Thursday, April 28.
It is the first major U.S. bank to offer clients Bitcoin-collateralized loans. According to a Goldman Sachs representative, the purchase piqued Goldman’s interest due to its structure and 24-hour risk management.