Bitcoin’s price BTC is evidently resilient, trailing lower during U.S. trading hours but remaining ahead by about 2% from previous week’s levels. A slight mishap occurred at the start of the week, with the colossal cryptocurrency briefly tripping below the $25,000 mark due to fears surrounding the reputedly bankrupt crypto exchange FTX, unloading their digital treasury chest containing more than $500 million worth of bitcoin.
Although FTX was granted court permission to commence the selling spree, the cautious progression of sale will likely prevent any rapid descents in the crypto market. The current market movements echos a trend that has carried on for nearly four months now – swift retractions of even modest price hikes.
The lumbering presence of FTX draws attention to the fact that plenty of sellers are keen to capitalize on market rallies, even amidst the absence of any organization intending to execute a massive bitcoin purge. This seller pool includes impaired trading firms, lenders, exchanges and even bitcoin miners who, just a year ago, were staunch hodlers, but are now compelled to sell a portion of their bitcoin reserves monthly to maintain their operational costs.
Bucking the selling tide are two market-defining announcements. Asset management colossus Franklin Templeton’s bid to list a spot BTC exchange-traded fund (ETF) and Deutsche Bank’s deeper dive into digital asset custody and tokenization could potentially cushion any dramatic price falls.
Franklin Templeton’s announcement conveniently coincided with bitcoin’s price nearing $25,100, echoing the market reactions to BlackRock’s Bitcoin ETF filing in June. These revelations seem to have fortified the much watched $25,000 price point as per Matrixport’s market update.
Stepping into this dynamics is Rachel Lin, the CEO of SynFutures, who points out that the consistency of bitcoin trade within these levels is a “promising sign”. Lin further clarifies that converting the $26,000 level from resistance to support is a process currently underway. Any attempt up until Wednesday to breach this level resulted in aggressive sell-offs. However, if bitcoin manages to stay north of $26,000 by the week’s end, it could usher positivity, at least in the short term.
One dark cloud in the crypto sky is the overall market performance, which seems to lack the vigor displayed by bitcoin. The CoinDesk Market Index displayed mere 0.8% growth over the preceding week while the CoinDesk Bitcoin Price Index outperformed and increased by 1.7%.
Regrettably, as noted by Lin, the broader crypto market cannot maintain stride with bitcoin. Altcoins took a harder hit on Monday, underperforming in their bounce back. Apecoin (APE), for example, shed almost 18% of its value over the week ahead of a significant token unlock due this Sunday. This event will unleash $43 million worth of tokens, providing an exit opportunity for early investors, which indirectly signifies that strategic trading of BTC long positions, and strategically unloading altcoins, particularly those with imminent event-related risks like ApeCoin, could yield significant profits.
Source: Coindesk
