Bitcoin price drops to $23K in minutes despite huge new Grayscale buy-in

Spread the love

Grayscale adds 50% of miners’ monthly block reward tally in a single day but price action stays decidedly weak.

Bitcoin (BTC) fell by almost $1,000 in under an hour on Dec. 23 as spot markets refused to buy fresh good news from institutional investors.

Cryptocurrency market overview from Coin360.

BTC price spooked near $24,000 sell wall

Data from Cointelegraph Markets, Coin360 and TradingView showed a surprise bearish trading session for Bitcoin on Wednesday, which hit local lows of $22,800.

It took less than sixty minutes for BTC/USD to descend from highs of $23,718, reaffirming volatility as a feature of the current landscape as well as the selling pressure surrounding $24,000.

At press time, the pair circled $23,000 as the market took a brief respite to determine direction before Wall Street opened.

BTC/USD 3-day chart. Source: TradingView

Grayscale adds $284 million of BTC in one day

The move contrasts with bullish accumulation continuing from institutional quarters, with Grayscale adding more BTC to its assets under management on Tuesday than the entire previous week combined. That week-long accumulation, although lower, still witnessed a new all-time high for Bitcoin.

RECOMMENDED READ:  ‘Secret’ bridge turns ERC-20 tokens into privacy coins

Grayscale added 12,319 BTC ($284.5 million) on Tuesday, while last week’s tally was 11,512 BTC ($266.1 million). For context, Bitcoin miners are currently able to release around 28,000 BTC per month in block rewards.

“Bad news for Bitcoin bears,” analyst Kevin Rooke commented on Grayscale’s continued commitment to Bitcoin buy-ins.

As Cointelegraph reported, MicroStrategy, which now owns over 70,000 BTC, reportedly did not move the market with lump-sum buying last week when it upped its reserves by $650 million.

Wednesday meanwhile saw further signs of fresh institutional deals, with Coinbase seeing a sudden large outflow in what one analyst suspected was another over-the-counter (OTC) purchase.

“12,006 $BTC flowed out from Coinbase a few hours ago. As I said, it went to custody-looked-like wallets,” Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, tweeted.

“It seems that Coinbase makes a new cold wallet for each customer after the OTC deal for institutions. I’m very bullish on $BTC.”

 321 Interactions,  2 today

READ ALSO:
New data reveals why those that purchased in Bitcoin in 2017 are the strongest HODLers in 2021

People who bought Bitcoin to become the strongest HODLers in 2017, new data reveals. Investors who started their Bitcoin journey Read more

Upcoming key support for Bitcoin and what you need to know

Bitcoin is currently trading at $50406, and despite the dramatic decline from ATH to $58330, the new price level is Read more

Why Hoskinson says Polkadot, Cardano and Ethereum can all coexist

According to Cardano Creator Charles Hoskinson, there is room on the market for more than one smart contract network. In Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us

%d bloggers like this: