Dec 13 (Reuters) – Plucky bitcoin has held steady since seeing the chaos of the FTX collapse, gathering strength to rally towards the dizzying heights of $30,000 in 2023.

The battered bitcoin has not responded since being hit by the FTX collapse, taking a deep breath before plunging into the depths of $5,000.

Place your bets, spin the wheel.

Arguably, the world’s dominant cryptocurrency has been uncharacteristically quiet over the past two weeks, treading water between $15,770 and $17,350 following the strange wake of the FTX-induced market mini-crash in November.

What happens next is anyone’s guess.

“The question we have to ask now is: Are there any sellers left in this market? In my opinion, no, there aren’t that many left,” said Jacob Sansbury, co-founder of retail investor services firm Pluto.

Sansbury believes that most of the over-leveraged miners, who tend to be large holders of bitcoins, have exited positions to pay debts incurred with traditional money to finance their equipment and operations.

In fact, Bitcoin’s recent lull could be due to the fact that there are fewer coins for sale: the amount held on exchanges for trading stands at 1.97 million, Coinglass data shows, a sharp decline from 2.33 million at the beginning of the year.

A major download has already occurred; November saw a 7-day loss of $10.16 billion in bitcoin investments as investors were forced out of long positions, the fourth-largest loss on record by that measure, according to Glassnode data .

The cryptocurrency is already down more than 60% in 2022 and is expected to see its first annual loss since 2018.

Many remaining investors are placing their bitcoin in offline “cold storage” according to chain data, which should bolster a price floor around $16,000, Sologenic co-founder Bob Ras said. , a digital assets and exchange company.

“Barring more market surprises, it’s hard to imagine BTC going down significantly,” he added.

Ras believes that if it weren’t for the high-profile collapse of crypto players FTX, Celsius and Terra this year, the price of bitcoin would now be closer to $25,000.

But this is crypto, and there could be more surprises in store, with a number of potential sell-off triggers on the horizon.

THE TALE OF THE BEAR

The first potential danger is the risk that more bitcoin miners will be forced to sell their holdings to stay afloat as mining becomes more and more expensive.

“Miners as a group start to become unprofitable below $20,000, so we’re below that point,” noted Ben McMillan, chief investment officer at IDX Digital Assets.

CrytpoQuant’s miner reserve indicator, which tracks the amount of bitcoins in miners’ wallets, has dropped by about 7,722 bitcoins since November.

Market players also pointed to concerns about the Grayscale Bitcoin Trust, ( GBTC.PK ) the world’s largest bitcoin fund with $10.9 billion in assets. Parent company Digital Currency Group, which owns Genesis Trading, owes $575 million to the Genesis crypto lending group, DCG’s CEO told shareholders on Nov. 22.

Grayscale Bitcoin Trust’s discount to its net asset value is at an all-time low of 48%, and the stock hasn’t traded at a premium since March 2021, Coinglass data showed.

DCG said last month that the problems in Genesis’ lending business had no impact on DCG and its subsidiaries, while Grayscale maintained its business as usual and its underlying assets were unaffected.

“That could be the other shoe to drop,” McMillan said, referring to the possibility of Grayscale running into financial trouble. “That said, if bitcoin can hold the $15,000 line through the DCG training, it would be a strong indicator for 2023.

A more brutal than expected Federal Reserve at its year-end meeting on Wednesday could further erode risk appetite and the outlook for bitcoin, cryptocurrency watchers said.

Bitcoin is down 75% after hitting a record high of $69,000 in November 2021

TECHNICAL PROCUREMENT

Scenarios of bitcoin jumping to $30,000 or falling to $5,000 in 2023 were long-term possibilities flagged by VanEck and Standard Chartered, respectively.

On the technical side, several analysts pointed to indicators showing that bitcoin may have found support between $16,000 and $16,800.

The cryptocurrency could also find resistance around the $17,490 level, said Eddie Tofpik, head of technical analysis at ADM Investor Services, warning that any longer-term rally could be challenging.

“Every time we see a rally, there’s one step up and then two or three steps down,” he said.

Vetle Lunde, an analyst at Arcane Research, said long-term bets could be attractive in the wake of November’s turmoil.

However, uncertainty reigns.

“Keep in mind that massive declines tend to be followed by an enduring, directionless market filled with apathy and unfathomable second-guessing,” Lunde added.

Reuters Graphics Reuters Graphics

Reporting by Lisa Pauline Mattackal and Medha Singh in Bangalore; Editing by Pravin Char

Our standards: the Thomson Reuters Trust Principles.

The opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence and freedom from bias.

#Cryptoverse #Jump #Fall #Play #bitcoin #roulette

mwplay888 log in by mwplay888 log in

jili777