There Is A Chronic Lack Of Demand For Bitcoin But Wall Street Disagrees
In the last 2 months, the price of Bitcoin has fluctuated between $6,500 and $6,800. Only two times has BTC contrived to test the $6,800 resistance level. Other than these two times its price has shown little momentum past the $6,000 region.
This stagnation according to Jani Ziedins, a cryptoanalyst at Cracked Market, shows a chronic lack of demand for the digital asset.
“Bitcoin is still struggling to break $6.8k resistance. If buyers wanted to buy this dip, they would have jumped in already. The chronic lack of demand at these levels is a concern, and the path of least resistance remains lower.”
Although these comments spell trouble for Bitcoin, Wall Street firms seem to have a different opinion.
To take an example, on October 3, a group of Wall Street companies led by Chicago Board Options Exchange (Cboe) and $30 billion brokerage giant TD Ameritrade announced their support for ErisX. ErisX is the first multi-cryptocurrency futures market that supports Bitcoin, Litecoin, Ethereum and Bitcoin Cash.
ErisX will reduce the barriers that impede institutional adoption of cryptos. This move will help escort in the next wave of market participants. The participating Wall Street firms believe that there is sufficient demand in the market, for transparent and regulated crypto-related platforms.
On this development, JB Mackenzie, the Managing Director of Forex and Futures at TD Ameritrade, said:
“We expect we will have customers interested in participating. The digital asset economy has been developing so much over the last nine months, and investors are crying for a regulated, transparent platform.”
Recently, the Wall Street Journal reported that a large number of traders in the crypto market are using bots in a bid to manipulate the market. This might be another reason for the Bitcoin to stabilize.
This observation was confirmed by the CEO of Binance, Changpeng Zhao. He admitted that traders have been using an algorithm that consistently files thousands of orders in 10 minutes and this has stabilized the price of Bitcoin at $6,000 level.
“That is one weird algo. Will ask the team to look into it. However, the minute we interfere, they will complain all over social media, ‘Binance blocked my account!’ No happy medium.”