Bitcoin price bounce-back: BTC value steadies following Thursday’s slump

And Gunnar Jaerv, COO at First Digital Trust, a Hong Kong-based digital asset custody provider, appeared to agree, saying: “When the price of BTC fluctuates from $4k to $19k over just nine months, it is not unusual to see a correction.

“This recent leg up was driven by the derivatives market as evidenced by the fairly high funding rate, leading to a small long squeeze.

“While the all time high price of BTC reached in 2017 has not been surpassed, the total market capitalisation of BTC is much higher as there are significantly more BTC in circulation than ever before.

“Even though large players like Grayscale, Square and PayPal buy more BTC than daily mining produces, the end-users of those platforms can still sell or even short with Grayscale.”