Bitcoin Price Jumps Positively Friday Morning After Thursday Session Collapse [26 March 2021]

Bitcoin Price Jumps Positively Friday Morning After Thursday Session Collapse
Bitcoin Price Jumps Positively Friday Morning After Thursday Session Collapse
Investing.com | 26/03/2021 10:38

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Bitcoin Price Jumps Positively Friday Morning After Thursday Session Collapse
By Yasin Ebrahim

Investing.com - The price of bitcoin rose on Friday (26/03) morning and closed down in the previous session as hedge funds rebalanced their portfolios towards the end of the quarter, but the sell-off to $50,000 was supported when signs emerged pointing to long-term strength 'hodl' rising to a record high for the year.

BTC/USD gained 0.35% to $52,369.9 at 10:27 a.m. On Friday morning and ended down 1.92% at $51,322.3 in Thursday's closing session.

Net flow from/to bitcoin exchange exchanges - the difference between the number of bitcoins moving on and off the exchange - fell to a record low for the year, suggesting the move from exchanges to personal wallets - indicators of long-term demand - continues to increase.

Net flows from/to the bitcoin exchange fell to about -1,250 on Thursday, data from glassnode's on-chain analysis showed.

The signs pointing to long-term 'hodl' strength come as hedge fund managers - who have been forced to look at risky corners of markets such as cryptocurrencies or high-value stocks in search of profit - are expected to adjust their portfolio allocation towards the end of the quarter, releasing some of their risky assets.

Bitcoin is expected to be one of the victims of the portfolio's rebalancing, or change as managers seek to approach the 60% to 40% allocation of bond equity.

The on-chain data report also adds credence to a portfolio overhaul from larger bitcoin holders as the bitcoin whale index, which measures the number of bitcoin addresses with at least 1,000 bitcoins, is down 10% from a recent high of about 2,500 clusters.