Bitcoin hodlers and traders should tighten their belts

• Bitcoin and altcoin global market cap has surged by more than 2.44% over the past 24-hours
• A robust crypto up market in early January has been driven by fund inflows
• The leading cryptocurrency can tank as low as $10k wiping all its gains due to lack of fundamental value

Bitcoin hodlers and traders have enjoyed good gains over the last year with good gains. Over the year, BTC price remained highly volatile, still the price continued to close itself with a 60% gain. As the year ended, investors bid farewell, and began to have concerns about the prices in the market this year. Notably, the global market cap of the cryptocurrency market has surged by more than 2.44% over the past 24-hours. Still, several cannot get over the bearish momentum. According to Alex Kruger, economists and cryptocurrency trader, a robust crypto up market in early January has been driven by fund inflows.

Bitcoin remains positive every new year

Kruger took to Twitter to analyze the BTC returns in early January over the past four years. Notingthe data, every time we have observed a positive return being recorded in the Bitcoin pattern.

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In terms of price, it is significant that the king crypto coin started at a level close to $29k last year on January 1. Over the year, while achieving new highs, it touched an ATH of $69k. In the last quarter, the price hovered to close near $48k.

Sharp corrections are ahead

Carol Alexander, professor of finance at Sussex University, expects that a sharp correction is ahead. In a recent talk with CNBC, Carol highlighted that the leading cryptocurrency can tank as low as $10k wiping all its gains due to lack of fundamental value. She cited that if she were an investor now, she would think about coming out of the asset soon, because BTC price will probably crash this year.

Besides, on the fund flow front, CoinShares has published some data hinting at the largest weekly outflows on record. The flows totaled $142 million in its last report. The platform observed that the coin designed by Satoshi Nakamoto saw outflows totalling $89 million. In contrast, the figure is well below the outflows observed in June where they were as much as $150 million.

Following the scenario, Ricardo Salinas Pliego, the third richest person in Mexico urged Mexicans to invest in the flagship crypto asset this new year. Pliego asked investors to stay away from fiat currency as it is fake and lies. Hence, investors should invest in Bitcoin.

Institutional interest continues to grow

Noelle Acheson, head of market insights at Genesis Global Trading, is predicting strong institutional interest in BTC and altcoins firms. She underscored that just the institutional players growth over the past 12months has been astonishing.

Acheson further explained that we are witnessing a strong sign of that accelerating over the next year. Both through direct token investment and through investments in ecosystem infrastructure firms themselves. Moreover, she noted that several investors are now bypassing the two major crypto and going to some of the riskier but also higher return tokens that represent technological advancements.