Bitcoin (BTC) lingered close to $16,500 on the Nov. 23 Wall Street open as United States markets awaited Thanksgiving cues.
Grayscale, GBTC nonetheless dominate crypto temper
Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD shunning volatility after contemporary two-year lows the day prior.
The pair left analysts guessing the day earlier than U.S. markets closed for the Thanksgiving vacation, with crypto commentators nonetheless targeted on Digital Currency Group (DCG).
Potential liquidity issues with DCG-owned Genesis Trading continued to agitate these already anticipating additional losses throughout Bitcoin and altcoins.
As Cointelegraph reported, issues had already unfold to doubt the way forward for the Grayscale Bitcoin Trust (GBTC), the biggest Bitcoin institutional funding automobile with belongings beneath administration price over $10 billion.
On Nov. 22, ex-Grayscale CEO Barry Silbert launched a letter to DCG shareholders, broadly shared on social media, searching for to shore up morale.
“Not sure how to interpret the mixed reports around DGC, GENESIS, Grayscale, but Barry Silbert’s letter yesterday gave the crypto market some hopium,” analytics useful resource Material Indicators wrote in a part of a Twitter thread on the day.
It added that bulletins on GBTC might nonetheless come after hours in a possible volatility catalyst.
An accompanying chart of purchase and promote stress on the biggest world change Binance confirmed robust resistance in place at slightly below $17,000.
On the purchase aspect, solely $15,000 offered any stable assist on the time of writing, with the majority at $14,000.
“Never have seen sentiment this bad”
Commenting on the overall state of the crypto market after the FTX debacle, in the meantime, in style commentator William Clemente stated that sentiment shouldn’t be confused with Bitcoin’s underlying energy.
Related: Bitcoin may have $1B extra on-chain losses earlier than new BTC value backside
“Never have seen sentiment this bad,” he acknowledged.
“Concerns about every centralized company in the industry, people giving up, losing hope, depression. Meanwhile the fundamentals of Bitcoin are completely unchanged. Posting this to revisit when BTC is pushing to new highs in a few years.”
According to traditional yardstick the Crypto Fear & Greed Index, there was nonetheless room to fall, with a rating of twenty-two/100 nonetheless greater than double that which historically accompanies bear market bottoms.
“The word dead has been rapidly circulating around crypto platforms in November,” analysis agency Santiment added in insights of its personal on Nov. 22.
“As one of the more bearish sentiment words, this is a sign of traders giving up on markets rebounding. Ironically, this capitulation is historically when markets rebound.”
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