Bitcoin at $26.4K Set for Weekly Gain, but Rallies Might Continue to be Sold
The price of bitcoin (BTC) is modestly lower during U.S. trading hours on Friday, but at its current $26,300 is ahead about 2% from week-ago levels.
The crypto began the week with sizable losses, dipping below $25,000 for the first time since mid-June over worry bankrupt crypto exchange FTX was soon to begin unloading all of its digital assets, which included more than $500 million worth of bitcoin.
While FTX did receive court permission to begin selling, the sales will be at a measured pace and unlikely to cause any quick tumbles in crypto markets.
Bitcoin (BTC) price crash averted, but rallies continue to be sold
The overarching theme in bitcoin and crypto in general for nearly four months now is the speed with which even modest moves higher get reversed.
As the FTX news this week demonstrates, while at the moment there don’t appear to be any entities interested in a full-scale dumping of digital assets on the market, there remain numerous sellers looking to take advantage of rallies.
In addition to FTX, consider other impaired trading firms, lenders, and exchanges, as well as bitcoin miners – many of whom one year ago were confirmed hodlers, but now must sell at least part of their bitcoin stash each month to help fund their operating expenses.
Despite the selling pressure, this week’s positive news about asset management giant Franklin Templeton joining the race to list a spot BTC exchange-traded fund (ETF) and global lender Deutsche Bank delving deeper into digital asset custody and tokenization might backstopped prices, rendering Monday’s breakdown a false signal, according to crypto service provider Matrixport.
“The Franklin Templeton-news was released as prices neared $25,100, coinciding with when the market became aware of BlackRock’s Bitcoin ETF filing in June,” Matrixport noted in a market update on Telegram. “Hence, this $25,000 level is of the utmost importance now, and appears to be fortified by news affecting prices.”