The price of bitcoin falls below $43,000
The price of bitcoin has dropped below the $43,000 mark, contributing to a bearish market sentiment. In the past 24 hours, bitcoin’s value decreased by over 0.5% to $42,676. This downward movement resulted in the liquidation of more than $75 million worth of cryptocurrency long positions, with almost $30 million being liquidated in bitcoin leveraged positions.
Genesis files motion to sell Grayscale assets
Genesis Global Capital, a bankrupt crypto lender, has filed a motion seeking authorization to sell approximately $1.6 billion in trust assets. These assets include shares of Grayscale Bitcoin Trust worth about $1.4 billion, shares of Grayscale Ethereum Trust worth about $165 million, and shares of Grayscale Ethereum Classic Trust worth about $38 million.
Federal Reserve delays rate cut
The U.S. Federal Reserve has signaled that any potential rate cuts will be delayed until May 2024 or later. Federal Reserve Chair Jerome Powell ruled out an earlier rate cut in 2024 and stated that a rate cut in March is unlikely to happen.
Bitcoin call options focus on $50,000
Data from derivative markets suggests that bullish sentiment for bitcoin is being sustained in the medium term. The largest cluster of outstanding contracts for bitcoin call options with a strike price of $50,000 is set to expire on Feb. 23.
Hot Take: Bitcoin faces bearish market sentiment and potential selling pressure
The recent drop in the price of bitcoin below the $43,000 mark has intensified bearish market sentiment. With the liquidation of millions of dollars worth of cryptocurrency long positions and the delay in potential rate cuts by the Federal Reserve, selling pressure on bitcoin is increasing. However, there is still optimism in the market, as evidenced by the concentration of call options at $50,000. Traders are anticipating a rise in bitcoin’s price by the end of February. It remains to be seen how these factors will continue to impact the cryptocurrency market.
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