Home Business News Bitcoin outlook: Will the cryptocurrency market recover?

Bitcoin outlook: Will the cryptocurrency market recover?

29th Jan 24 9:39 am

The price of Bitcoin recently dropped to a level of $38,555, then rose again above the crucial $40,000 level last Wednesday, starting Monday’s trading at $42,250.

This decline led to the liquidation of $55.52 million in long-term positions and $27.42 million in short-term positions.

I believe that last week’s deep decline in Bitcoin prices triggered massive liquidation operations in the entire Cryptocurrency market.

From my perspective, this drop was a result of the GBTC (Grayscale Bitcoin Trust) redemption through the bankrupt cryptocurrency exchange FTX. The approval of the Securities and Exchange Commission for an immediate Bitcoin ETF fueled the decline in Bitcoin prices, contrary to expectations.

This is because bankrupt companies like FTX recovered the value of their GBTC. Bankrupt companies own these stocks directly tied to the actions of the CEO of the Cryptocurrency group, Barry Silbert, who is the CEO of the parent company Grayscale. In an attempt to boost managed assets in the giant company, the CEO encouraged companies to use GBTC instead of Bitcoin. This led these companies to liquidate their GBTC assets and withdraw their capital, causing prices to fall.

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It’s worth noting that Barry Silbert is currently under investigation by several regulatory bodies and law enforcement agencies in the United States. The price of Bitcoin is likely to decline sharply if large-scale liquidations from GBTC occur. Another factor supporting the decline in Bitcoin price is profit-taking activity by whales.

In the short term, Bitcoin prices may find some positive support on Monday as Google updates its scheduled policy for cryptocurrency and related advertisements. This update is expected to see the appearance of some Crypto asset products on the search engine’s advertising board. Bitcoin ETFs are likely to be displayed, taking into account the fulfillment of selection criteria.

Since the company handles nearly 100,000 searches per second, representing about 90% of the world’s population, awareness of the Bitcoin ETF fund is expected to significantly increase. I expect this update to allow ads from “advertisers offering Cryptocurrency Coin Trust targeting the United States” to increase access to this category of investment products, potentially causing significant price movements.

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