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The price of bitcoin plunged 7.4% in the last 24 hours to trade at $42,591 as of 7:35 a.m. EST, with trading volume up a fraction.
But there was better news for the cryptocurrency king when BlackRock CEO Larry Fink said btc is an international asset class, adding that investors should consider it as an alternative to gold as a hedge against inflation.
“It's no different than what gold represented for thousands of years,” Fink said in an interview with CNBC. “It's an asset class that protects you.”
BlackRock CEO Larry Fink on bitcoin:
“I think it increases if… people are more afraid of geopolitical risks, they are afraid of their own risks…
…It's no different than what gold represented for thousands of years. It's a class of asset that protects you…” pic.twitter.com/4ogmhANppi
– bitcoin Bites (@BTC_Bites) January 12, 2024
This is not the first time Fink has expressed such a belief. In an interview in December, the BlackRock executive said that bitcoin's rally in October indicates that investors view btc as a mature asset that can serve as a store of value in times of crisis.
In fact, BlackRock CEO Larry Fink echoed similar claims in an interview earlier this month.
Fink noted that bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoinThis month's rally is an indication that investors are seeing btc?src=hash&ref_src=twsrc%5Etfw”>#btc as a mature asset that can serve as a store of value in times of crisis pic.twitter.com/o1skgg7aU3
— Wakem Capital Management (@WakemCapital) October 31, 2023
Elsewhere, in the wake of open redemption options, the price of bitcoin suffered following Grayscale bitcoin Trust (GBTC) investors exiting the market. They redeemed their GBTC and sold bitcoin on the open market. This caused the price of bitcoin to drop by almost 10% at one point.
bitcoin Price Falls as Investors Redeem Their GBTC Trusts Grayscale
The Grayscale bitcoin Trust (GBTC) held over $25 billion worth of btc. The sale of those assets may be partly to blame for the downward pressure on the price of bitcoin.
bitcoin price is falling as people dump their GBTC shares.
GBTC owned over $25 billion worth of bitcoin that has been locked up for years without a put option. As soon as the redemption option was opened, for the first time people started leaving, as they exit bitcoin… pic.twitter.com/EqHgpHyVdd
– Ran Neuner (@cryptomanran) January 12, 2024
Arkham Intelligence data shows that Grayscale sent 4,000 btc worth $183 million to a Coinbase Prime deposit address. This shows investors shifting their assets to other ETFs or selling normally.
Millions in liquidations as bitcoin price falls
With bitcoin price dumping, around $130 million in total liquidations were recorded. This comprised $112.84 million in long positions and $17.57 million in short positions.
Along with the liquidations, up to $1.19 billion in open interest was eliminated.
bitcoin Price Outlook as BlackRock CEO Larry Fink Says btc Is Similar to Gold
With increasing selling pressure, bitcoin price broke below the lower boundary of the bullish technical formation. There is a possibility of a prolonged decline and buyer momentum continues to wane. This is seen in the drop in the Relative Strength Index (RSI). However, a closer look at this momentum indicator shows an attempt to veer north as the bulls attempt to regain their footing in the btc market.
Improved seller momentum could cause bitcoin price to fall, first losing support due to the $50-day SMA at $42,485. Further south, it could test the support at $40,726 or, in the worst case, extend the decline to $37,800.
However, for the overall bullish outlook to be invalidated, bitcoin price must break and close below the psychological level of $30,000.
The red bars on the Awesome Oscillator (AO) histogram support the bearish thesis, suggesting that bears have a presence in the btc market. The Moving Average Convergence Divergence (MACD) indicator also crossed below the signal line, which is a bearish crossover. These accentuate the bearish thesis.
Reverse case
It is impossible to ignore the fact that bitcoin price enjoys solid support against a downward movement. The 50-day SMA at $42,485 presents the first line of defense to the south. Buying pressure above this level could cause btc price to rise north.
Further buying pressure could see bitcoin price return to the ascending channel fold above the $44,135 level. Further north, btc could challenge the midline of the channel and potentially reach the psychological level of $48,000. In a highly bullish case, gains could see btc market value convert the range high of $48,969 into support, before using it as a starting point to target the psychological level of $50,000. Such a move would constitute a 16% increase above current levels.
Meanwhile, amid fluctuations in the price of bitcoin, a lot of attention is focusing on BTCMTX as investors rush to buy the bitcoin-derived ICO. The token first rose in value thanks to enthusiasm for the btc Spot ETF, and is now also benefiting from the halving expectation. It is also among the top three pre-sales of cryptocurrencies to buy now.
A promising alternative to bitcoin
BTCMTX is the symbol of the bitcoin Minetrix ecosystem, a staking mining project that has analysts excited. In his opinion, it is one of the crypto-projects-top-picks-investing-future-calsona-qr6te” target=”_blank” rel=”noopener”>best web projects 3 buy and a crypto-icos-2024-top-picks-big-returns-juliana-clarisse-calsona-zcxqe” target=”_blank” rel=”noopener”>the best option for ICOs of 2024.
Exploring the advantages of btc?src=hash&ref_src=twsrc%5Etfw”>#btc cloud mining!
Beginner Experience: No technical knowledge needed.
Economical: avoid high electricity and hardware costs.
Say goodbye to space limitations, noise and thermal disturbances.
Forget about resale worries! pic.twitter.com/MlwYKwoKLa—Bitcoinminetrix (@bitcoinminetrix) January 13, 2024
bitcoin Minetrix is in the pre-sale stage, registering over $8,338 million out of a target target of $9,103 million. Investors who want to purchase BTCMTX can do so on the website, where it is currently selling for $0.0128.
He #Phoenix Group reaches a $187 million deal with @BITMAINtech for bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin mining machines, following its recent initial public offering and partnerships.
What is your opinion on his strategic moves?#BitcoinMinetrix also achieves another milestone and surpasses $8,200,000! pic.twitter.com/zoLvO5vxw6
—Bitcoinminetrix (@bitcoinminetrix) January 11, 2024
Visit bitcoin Minetrix to pre-sell BTCMTX here.
Also read:
- Audited by Coinsult
- Secure and decentralized cloud mining
- Earn free bitcoin daily
- Native Token on Pre-Sale Now – BTCMTX
- Staking Rewards: Over 100% APY
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