What gives these traders pause, though, is the rapid recovery that BTC just saw.
While Bitcoin did trade as low as $30,000 just minutes ago, it now trades at $31,300. The rapid recovery in the cryptocurrency’s price action may show that there is a latent bid for the cryptocurrency that will appear on any dip.
This buying pressure is likely institutional. Grayscale, for instance, added nearly 13,000 BTC to its holdings late in December to account for an influx of institutional capital.
There is also news that firms such as SkyBridge Capital are purchasing dozens of millions of dollars worth of BTC.