In a recent turn of events, the price of Bitcoin (BTC) has experienced a significant increase, surpassing the $52,000 mark for the first time in two years. This milestone was recognized by Spot On Chain, a prominent cryptocurrency analysis platform, on X (formerly Twitter).
In a recent turn of events, the price of Bitcoin (BTC) has experienced a significant increase, surpassing the $52,000 mark for the first time in two years. This milestone was recognized by Spot On Chain, a prominent cryptocurrency analysis platform, on X (formerly Twitter).
He noted that the price of Bitcoin had seen a steady rise over the past seven days, culminating in this notable achievement. However, this resurgence in Bitcoin’s value is now threatened by two major liquidation events that could impact its near-term price trajectory.
The first event concerns the approval granted to Genesis, a key player in the cryptocurrency market, to sell a substantial amount of Grayscale Bitcoin Trust (GBTC) shares. The sale involves 35 million GBTC shares, valued at approximately $1.3 billion.
This move is reminiscent of a similar event, when FTX sold more than a billion dollars in its GBTC holdings, which allegedly caused a significant drop in the price of Bitcoin: from $49,000 to $39,000 in January of the previous year. The market is bracing for the potential impact of the Genesis sale, and investors and analysts are closely monitoring the situation.
US Government’s Bitcoin Delisting Plans
Adding to market apprehensions, the US government has filed a notice to sell a portion of its Bitcoin holdings. On January 25, 2024, it was announced that 2,875 BTC, valued at $150.6 million, seized from the famous Silk Road platform would be sold. With the US government holding approximately 208,000 BTC, worth around $10.9 billion, it remains one of the largest Bitcoin holders globally.
Historical data suggests that previous government sales, such as the sale of 8.2 thousand BTC through Coinbase in July last year, have influenced Bitcoin’s price dynamics. The market saw a slight drop from $30.8k to $30.2k after the sale, leading to speculation about the potential effects of the upcoming sale.
Despite these looming threats, the cryptocurrency market has shown resilience. According to the latest updates, the price of Bitcoin stands at $52,253, which is an increase of 2.10% in the last 24 hours and an increase of 22.59% in the last 30 days. This surge has propelled Bitcoin’s market capitalization above the $1.03 trillion mark, reflecting a 2.05% increase over the past 24 hours.
