Bitcoin speculators’ record cost basis boosts $100K support as BTC dives

Bitcoin's Diving Price and the Role of Speculators

Recently, the price of Bitcoin took a downwards plunge, stirring up the crypto market. However, amid this turmoil, Bitcoin speculators' record cost basis is holding up a safety net, creating a strong support level at the $100,000 price point.

Market Volatility and the Speculators' Impact

The crypto market is notorious for its high volatility, with Bitcoin leading the way. The speculative nature of Bitcoin investors plays a huge role in this dynamic. These speculators are boosting the prices, providing strong support even as BTC experiences significant dips. This phenomenon can be observed on platforms like bitcoinmeter.io.

The Fear and Greed Index

One tool that provides insight into the market sentiment is the Bitcoin Fear and Greed Index. This index measures the emotions and sentiments from different sources and crunches them into one simple number. A value of 0 means 'Extreme Fear' while a value of 100 represents 'Extreme Greed'. These values reflect the mood of Bitcoin investors, which also influences the price action of Bitcoin.

Record Cost Basis - The $100K Support

Despite Bitcoin's current decline, the cost basis of speculators signals a steady support for the $100k price. This is due to a record number of investors buying at this price point, creating a strong floor that could potentially withstand downward pressures.

Conclusion

While Bitcoin's price may be diving, the indicators suggest that a significant support level exists at the $100k mark. Bolstered by speculators and reflected in the Fear and Greed index, this support could be key in the future development of Bitcoin's price trajectory.

Disclaimer: This content is for informational purposes only and not financial advice. It does not constitute an endorsement of any kind, and it is crucial to do your own research before making any investment decisions.