Bitcoin (BTC) Price Retakes $70,000 On Central Bank Easing Hopes, Potential Easing GBTC Sell Pressure – New ATHs Next?
Bitcoin (BTC) Price Retakes $70,000 On Central Bank Easing Hopes, Potential Easing GBTC Sell Pressure – New ATHs Next? / Source: Cryptonews
The Bitcoin (BTC) price pushed back above $70,000 on Monday for the first time in 9 days as traders focused on the theme of global central bank easing, a possible easing on GBTC sell pressure and BlackRock’s first major entry into the realm of asset tokenization.
Last changing hands just under $70,000, the Bitcoin price is up 6% in 24 hours and back above its 2021 peaks.
Two US Federal Reserve policymakers were on the wires talking about rate cuts on Monday.
That comes a week after the Fed, ECB and BoE all teed up rate cuts later in 2024 at meetings last week, despite sticky inflation pressures in some economies. The Swiss National Bank also delivered a surprise rate cut last week.
As per CoinShares’ weekly fund flows blog, US spot Bitcoin ETFs saw big net outflows last week.
This was driven by a whopping $2 billion in funds exiting Grayscale’s Bitcoin Trust (GBTC). This was only partially offset by a $1.1 billion inflow into the other newly launched US spot Bitcoin ETFs.
GBTC liquidation by bankrupt estates such as Genesis have been cited as driving much of the outflows.
If bankruptcy-related GBTC selling is set to slow, that could remove a key short-term headwind to the market.
Elsewhere, BlackRock last week launched its first tokenized fund on Ethereum. The fund, called the BlackRock Institutional Digital Liquidity Fund (BUIDL), is fully collateralized by cash, T-bills and repurchase agreements.
Some analysts implied BlackRock’s latest steps to legitimize and promote crypto adoption could also be supporting market sentiment on Monday.
Bitcoin Price Poised to Retake All-Time Highs Above $73,000?
As the Bitcoin price probes $70,000, bulls are asking whether it could soon retake all-time highs.
Bitcoin snapped a short-term downward trend line on Sunday that had been in play since the market peaked at $73,800.
The Bitcoin price is also back above its 21DMA, suggesting momentum is back on the side of the bulls. Technically speaking, the door is very much open to a short-term retest of all-time highs.
Bullish fundamentals support this view. Narratives surrounding central bank easing, the upcoming halving and HODLer reluctance to sell suggest upside price risks lay ahead.
As per analysts at Blockware Solutions in their latest newsletter, mute average on-chain transfer volume suggests “nobody wants to sell”.
“Average on-chain transfer volume (USD Denominated) is well below the 2021 bull market peak”.
Once key wild card to the short-term price action is whether GBTC outflows suddenly pick up once again.
Another point to note – major Bitcoin rallies haven’t historically gotten going until a few months after the halving, not before.
But Bitcoin is a maturing asset class, and old rules and models don’t necessarily still apply.
All said, the probability that Bitcoin challenges $100,000 at some point this year remains very high.
Bitcoin Alternative to Consider – Green Bitcoin ($GBTC)
Bitcoin could easily 2x from current levels during the current bull market.
Those are impressive gains. But some highly risk-tolerant investors will be looking to secure much bigger gains during the coming bull market.
Investors like this will often spend a lot of time assessing various options in the altcoins, or even meme coin markets.
But one type of investment opportunity they shouldn’t neglect to look into is that of the presale.
Crypto presales are where up-and-coming web3 start-ups/protocols sell their native token at a big discount to early buyers to fund development.
Analysts at Cryptonews.com spend a lot of time combing the presale market. And one project that has caught their eye is an exciting protocol called Green Bitcoin ($GBTC).
Green Bitcoin introduces the new concept of gamified green staking. Stakers of the $GBTC token can boost their APY rewards by engaging in weekly price prediction challenges.
Introducing Green Bitcoin: A Revolutionary Predict-To-Earn Token.
Join us on our Gamified Green Staking Platform, where your predictions can turn into profits!
Website: https://t.co/dG5cEeCtRs
Telegram: https://t.co/bWanoe0vHv pic.twitter.com/eXuGQBkxio
— GreenBitcoin (@GreenBTCtoken) December 3, 2023
And, given it is issued on Ethereum, $GBTC is powered by the eco-friendly proof-of-stake network validation mechanism.
The project has already raised a whopping nearly $9 million as investors raise to get involved before the presale sells out.
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