Bitcoin price falls by 9.5% and no one seems to care: Are the days of panic over?
Bitcoin’s value has dropped by a whopping 12.4% over the last 7 days.
- Experts believe that as long as Bitcoin can stay above the $58.5K resistance zone, it can easily bounce back up again.
- VanEck’s Bitcoin Strategy ETF (XBTF) made its somewhat lackluster market debut yesterday.
- Tether Holdings revealed that it is working on a new project that seeks to help spur the adoption of Bitcoin globally using the Lightning Network.
The last 48 hours have been extremely tumultuous for the crypto market. Bitcoin (BTC), the world’s largest cryptocurrency by total market capitalization, has been on the receiving end of a lot of volatility. It slipped from a high of $68K to under $59K. At press time, BTC is trading for $58,925.
Many analysts do not seem to be fazed by Bitcoin’s ongoing financial freefall, claiming that as long as the flagship crypto can maintain its value around the $58K–$59.5K range, a scenario reversal could be witnessed. In fact, pseudonymous Twitter crypto pundit Rekt Capital believes that if BTC holds on to its $61K support, we could be in for another major bull run in the near term.
A somewhat different opinion is shared by independent trader and analyst Michaël van de Poppe. He believes that the coming few days and weeks could see Bitcoin slipping as low as $54,000 only for it to bounce back and accrue support around the $63,000 mark.
Another interesting development worth noting is that this current turmoil comes amidst news of VanEck’s Bitcoin Strategy ETF (XBTF) making its market debut a little over 24 hours ago. The offering opened with a decent trade volume of around $4.6 million. However, this figure is just a fraction of the first-day trading volume of $1 billion that ProShares’ Bitcoin Strategy (BITO) ETF witnessed last month.
XBFT’s low trading volume could have potentially been spurred by the United States SEC’s rejection of VanEck’s spot Bitcoin ETF application earlier this week. If allowed, this would have enabled investors to gain exposure to the “current price” of Bitcoin without them having to hold the flagship crypto.
Tether seeks to increase global Bitcoin adoption via its new offering
Tether Holdings, the stablecoin issuer behind the widely popular USDT token, announced recently that it had launched a new company called Synonym Software Ltd. It seeks to help bring Bitcoin transactions into the mainstream, primarily through the use of an upcoming financial platform that makes use of the Lightning Network (LN).
Company CEO John Carvalho noted: “Hyper-Bitcoin-ization won’t magically happen on its own. In order to live in a world without big banks, oppressive regulations or Big Tech presiding over our lives, we need a strategy and ecosystem to replace the legacy economy. That is where Synonym comes in.”
Thus, in light of BTC’s recently concluded Taproot upgrade, which makes the currency more transactionally functional, it will be interesting to see how the asset’s future plays out, at least adoption-wise.
Disclosure: The author owns a range of cryptocurrencies at the time of writing