Bitcoin struggled again on Wednesday, dipping below $61,000. While U.S. stocks hit new records, Bitcoin took a different path. It started the day around $62,000 but slid to $60,400 at some point, and is currently trading at $60,700, a loss of 2.65% over the last 24 hours according to CoinMarketCap.
One factor weighing on Bitcoin’s price could be the movement of seized cryptocurrencies linked to the PlusToken Ponzi scheme. Reports surfaced that these cryptos were being moved to exchanges, raising concerns that some large-scale selling might soon hit the market. Back in November 2020, Chinese authorities had seized nearly $4 billion worth of crypto, including a substantial amount of Bitcoin, from PlusToken operators.
Last week, we already saw Bitcoin fall from $66,000 to $60,000 before bouncing back a bit this weekend. However, there are a few other factors that could impact the price soon. For instance, the U.S. Supreme Court has approved the sale of 69,370 Bitcoins seized from the Silk Road case. It’s still unclear when or how these will be sold, but the prospect of so much Bitcoin entering the market has caught the attention of traders.
There’s also some news about the now-bankrupt crypto exchange FTX. A U.S. court has agreed on a payment plan for creditors, which means that 98% of them will receive more than $6.8 billion in fiat currency within the next sixty days. If this payout goes smoothly, it could inject a lot of liquidity into the broader crypto market.
Looking ahead, we can’t ignore the upcoming U.S. presidential elections. A Trump win could have a positive impact on the crypto market, as some analysts suggest. For example. Trump is radically against the U.S. selling (confiscated) Bitcoin.
Right now, Bitcoin seems to be waiting for the next big economic event, like inflation data or a new announcement from the Federal Reserve. If the price breaks upwards, we might see a renewed Bitcoin bull run.
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