Bitcoin is Poised for These Massive Buys if it Drops Below $30k
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Bitcoin is Poised for These Massive Buys if it Drops Below $30k

After the recent correction, several whales say they're waiting for the opportunity to buy BTC under the $30k mark.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

2021 has already been a turbulent year for Bitcoin, breaking through the $63k threshold in mid April, and now sitting around $38k after a sharp correction. As the dust settles, the price has continued to jump between $30k and $40k over the last weeks. 

While the volatility seems to have lessened for the moment, JP Morgan sees the crash continuing. Contrary to their predictions, $30k is a well established support for BTC price, with many institutional investors publicly staged to buy-in if the line is broken.

J.P. Morgan Suggesting Crypto Crash Will Continue

After the recent multi-week crypto crash caused by impending regulations from the Chinese government and Elon Musk’s negative comments, among other factors, many investors believe that the dip has come to a halt. There have been minimal price changes over the past few weeks, providing a sense of safety.

Despite the settling volatility, J.P. Morgan strategist, Nikolaos Panigirtzoglou, believes the ride could continue. While still predicting BTC to hit $145k in the long term, in a recent note to clients, he suggests that BTC price could drop to as low as $26k in the short term:

“While there are tentative signs of stabilization in bitcoin and Ethereum prices following the correction in recent weeks, the positioning backdrop is not yet at levels that could be characterized as ‘oversold,’ leaving them vulnerable to further position unwinds.”

After the wave of institutional purchases in Q1 of 2021 amounting to more than $8 billion, momentum is beginning to slow down with large corporations shying away. In addition, after the Bitcoin Fear and Greed Index remained in the green for the past few months, it has now solidified its position of ‘Extreme Fear.’

While the aforementioned points set a grim outlook for the short term price of BTC, J.P. Morgan still seems to be bullish on Coinbase, recommending the stock to clients. Assuming a short term dip, a break through the $30k threshold could provide an opportunity for purchases from institutions and large cap individuals. Is J.P. Morgan awaiting the possibility of increasing crypto exposure under $30k or anticipating gains on the Coinbase conjecture?

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Whales Ready to Buy in Under $30k

Institutional crypto purchases and sales are regularly covered by the media, yet individual investors continue to play a major role in the BTC market. Many large investors have voiced their intentions to buy if BTC price does dip below $30k, just reinforcing the already strong support.

One of the most prominent statements came from hedge fund manager Carl Icahn, in an interview last Tuesday. He suggested that he is planning to enter into the crypto markets with around $1.5 billion, granted that prices reach a slightly more attractive point.

Icahn said,

“I’m looking at the whole business and how I can get involved in it with Icahn Enterprises in a relatively big way because, I think, it’s here to stay in one form or another”.

Additionally, the active twitter crypto community provides more insight into the excitement of buying under the $30k price point. For example, Robert Kiyosaki sees his purchase point to be $27k:

In addition, crypto influencer with over 360k twitter followers, Lark Davis, is adamant to buy BTC below $30k:

BTC price continues to waver above the strong $30k support. Do you think J.P. Morgan analysts are correct, or will investor influence keep the price above $30k?

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