Bitcoin attempts to settle at $77,000... Cryptocurrencies take a breather. When will they rebound?

▲ Bitcoin (BTC) ©Da-sol Go

As the virtual asset market takes a breather amid strong wait-and-see sentiment ahead of a series of interest rate decisions by global central banks, major assets like XRP (Ripple) are showing mixed directions, but the massive accumulation by institutional whales is firmly igniting the spark for a new long-term bull market.

According to investment media FXStreet on April 29 (local time), the total market capitalization of virtual assets is currently stagnant around $2.57 trillion, and investors are holding their breath for policy decisions from the US Federal Reserve, the European Central Bank, and the central banks of Canada and the UK. The market anticipates a hawkish stance from authorities, and the investor sentiment index broke last week's low, plummeting to 26, confirming that fear has re-entered the market. The index failing to exceed 50 since September is interpreted as a key signal representing persistent bearish sentiment.

The leading cryptocurrency, Bitcoin (BTC), fell by about $4,000 from its high over the past two days, dropping to the $75,600 level, but on Wednesday, it attempted to settle above $77,000 and began to rebound. Although the current uptrend has broken, a complete bearish reversal has not been confirmed, and growth is temporarily slowing down in the 50% range of the January and February declines. Virtual asset analytics firm GSR identified $80,000 as a significant psychological barrier where a large volume of options is concentrated, while QCP Capital analyzed $82,000 as a key resistance level that needs to be broken.

In contrast to the short-term market fear, institutions' long-term outlook is extremely optimistic. Bernstein defined Bitcoin's low of $60,000 in February as a clear bottom, predicting that continuous capital inflow from institutional investors will lead to a higher and structurally longer bull cycle. Tim Draper, founder of Draper Associates, also emphasized that companies must hold 5% to 15% of their reserves in Bitcoin to fulfill their financial responsibilities to shareholders.

Overwhelming accumulation at the national and corporate level is also continuing. Patrick Witt, a member of the US President's Advisory Committee on Digital Assets, raised market expectations by announcing that there would be an important announcement regarding US strategic Bitcoin reserves in the coming weeks. Meanwhile, Bitmain, the largest corporate holder of altcoin leader Ethereum (ETH), was revealed to have accumulated over 5 million units at an average price of $2,369 over the past 10 months, amassing a massive 5.08 million Ethereum, which accounts for 4.21% of the current total supply.

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