Bitcoin is currently stabilizing around the $40,000 level. BTC saw its worst sell-off in more than 6 months on Wednesday when the price of the world’s most valuable digital asset touched a low of approximately $30,000.
Economists around the world have criticized Bitcoin for its volatility but Mark Yusko, CEO of Morgan Creek Capital Management, said that the latest volatility in Bitcoin and other digital currencies is not the enemy of crypto investors.
“Bitcoin volatility is not your enemy, it’s your friend. You want volatile assets. What you want is upside volatility. Downside volatility is painful, but over the long term, holding an asset that has volatility is the whole point of investing. An asset that has compounded 223% per year for 11 years has to have volatility,” Yusko said during an interview with CNBC.
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Yesterday, JPMorgan, a leading investment bank in the US, highlighted the impact of BTC’s recent volatility on institutional investors and mentioned a reversal of the pro-bitcoin sentiment among large investors due to the latest dip.
Bitcoin Network Activity
Despite the latest dip, BTC’s on-chain activity has increased significantly over the last few days. A leading blockchain tracking and analytics platform Whale Alert highlighted a transaction including 5,000 Bitcoin worth over $202 million from a crypto wallet to the digital exchange, Coinbase. The mentioned transaction was executed on 21 May at 4:24 UTC. In a separate transfer, a BTC whale moved 2,000 Bitcoin worth more than $82 million from a digital wallet to Binance.
“Bitcoin has now settled into the $38,000-$40,000 range, and ‘buythedip’ calls continue to prevail as the dominant presence on crypto platforms. Many are attributing this drop to China banning financial institutions from offering cryptocurrency services,” crypto analytics platform, Santiment mentioned on Twitter.
The latest data from the crypto firm, Bybt.com shows that the liquidations across the cryptocurrency market have decreased significantly since yesterday amid a drop in volatility of Bitcoin and other digital currencies.