Bitcoin, which started to decline again in the evening, relaxed up to $ 46,260 at the time of writing. The price remained above $ 47,000 for a long time during the day, with the latest relaxation, significant losses began to be experienced in altcoins. So what’s the next target?
Why Is Bitcoin (BTC) Falling?
On the first working day of 2022, Bitcoin fell again. The pullback associated with the appreciation of the dollar has caused the $ 46,000 levels to be seen for now. The US dollar saw a spike on Monday and the US dollar currency index (DXY) rose sharply.
TechDev claimed that the downtrend would disappear, arguing that the on-chain indicators do not support the bearish thesis. He said over the weekend that concerns about both the relative strength index (RSI) and the moving average convergence/divergence (MACD) pale in comparison to more fundamental indicators.
When Will Institutional Demand Increase?
For Bitcoin to make a strong comeback, institutional investors need to flock to BTC quickly. Many analysts predicted that this demand will occur in the first quarter of 2022. As a matter of fact, the first move came today, an Italian bank announced that it will soon allow Bitcoin investments through direct bank accounts.
The crypto regulations of the USA are awaited with great enthusiasm. Bringing the industry into a clear legal framework will make it easier for more institutional investment to flow this way. Many financial institutions can only do preliminary research because there are currently not enough regulations. Giant banks such as JPMorgan and BoA have started working for crypto-focused products over the past year. Special teams were formed in this regard and over 100 experienced personnel were recruited to the departments.
It seems that there is nothing to be done for the return of Bitcoin, except to wait for the good news from the USA for now. The SEC has appointed new advisors to accelerate its work on this issue. Good news may start coming soon. For now, the main issue is how to secure stablecoins in a way that does not victimize investors. Many top bureaucrats want to impose stablecoin issuer companies on similar obligations to banks.