by Rushali 
On Thursday Bitcoin tanked to below $30000, but it was for a very little time, as with the outflow of MicroStrategy’s buy at dip strategy which was worth $10 million. And the BTC touched the day’s high at $33866 with a 4.92% upside, according to Data from Cointelegraph Markets and TradingView.
With the Biden administration passing massive stimulus packages to help get the United States economy going again, and talks about bitcoins becoming reserve currency have started again.
Although Bitcoin’s recent volatility has some analysts saying BTC is a cyclical asset rather than a hedge, the price recent movements have caught the eye of retail investors who have shown a renewed interest in cryptocurrencies in general.
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The Bank of International Settlements had acknowledged that the digital currencies have used and the bank has plans to roll out a variety of central bank digital currency trials this year.
With the Bitcoin fear index has flipped from “Extreme Greed” to “Fear,” now investors are taking Warren Buffet’s advice of “buying when there is blood on the streets”.
Chad Steinglass, head of trading at CrossTower, has said that the correction in the BTC is triggered by the comments from US Treasury Secretary Janet Yellen.
Prior to Yellen’s comments, Bitcoin was experiencing a “post-correction consolidation” and was “rangebound between $34,000 and $38,000” with traders “waiting to see which side of the range would be challenged or broken.”
He further said that BTC’s next move will depend on institutional investors.
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“$31,000 was a pocket of strong support, so at least not everyone is selling. We’ll have to wait and see if that wall remains, or if institutions continue to accumulate. If they do, it’s likely that the trend will re-establish itself and continue. If they move to the sidelines waiting for more regulatory guidance, then their lack of buy flows will be acutely felt.”
Altcoins are also recovering from the downtrend. Polkadot (DOT) rallied 7.09% to a daily high at $18, while Chainlink (LINK) posted a double-digit gain and topped out at $22.31. Tezos (XTZ) has also seen a surge in interest which boosted the altcoin by 15% to $3.36. But still, bitcoins have a 64% share of the cryptocurrency market.
