Bitcoin has not moved as expected despite the news of Genesis, one of the largest cryptocurrency lenders in the world, filing for bankruptcy. This lack of negative movement from bitcoin in response to the news could bolster the digital asset’s path to the upside in the coming weeks.
Bitcoin remains unfazed by Genesis
Despite the dreaded news of a Genesis bankruptcy finally becoming a reality, the price of bitcoin has not reacted negatively. In fact, the digital asset has barely reacted to the news and continues to trade around the $20,900 level.
What this shows is that the news of the Genesis bankruptcy was already priced into the price of the asset. It is understandable given that the cryptocurrency lender had been considering filing for bankruptcy for some time and was exploring its options. So it makes sense that the bias and fear that such news would bring has already been consumed by space participants.
For bitcoin, this suggests that the price of the digital asset is where it should be. Since the current price level appears to be a fair price, there is more support for the current bull rally. It also means that for BTC to trigger another downtrend, it would have to be a real market-disrupting event.
A deep pullback from a market correction becomes even more unlikely with this news. This means that one falling below $20,000 could be further away than the bears would likeputting the cryptocurrency in a position for more upside rather than down.
BTC sees upside despite Genesis bankruptcy filing | Source: BTCUSD on TradingView.com
BTC investors are looking at expiring options
More than $580 million in bitcoin options are expected to expire on Friday, and while this would normally be a cause for celebration for the bears, BTC’s continued strong performance should make this a win for the bulls who are more likely to get out of the market. can get.
While there are some who expect inflation to get worse, an example of which is Jamie Dimon, CEO of JPMorgan Chase, there is a slowdown for now, which has eased the pressure on bitcoin and the overall crypto market for the moment. With inflation declining, risky assets are outperforming, increasing the likelihood of a price recovery rather than a decline.
Bitcoin price also sits comfortably above the 50-day and 100-day moving averages. At the very least, this reinforces bullish momentum for the medium-term digital asset. Moreover, there is ample support for BTC just above USD 20,500, which serves as a bear deterrent in the meantime. If BTC holds up over the weekend, a solid move above USD 21,000 can be expected next week.
The price of BTC is changing hands at $20,949 at the time of writing. It is up 1% in the last 24 hours and has seen a significant 10.34% increase in the past seven days, according to data from Coinmarketcap.