1. Bitcoin (BTC) has seen sideways price action in the last 24 hours, recording 1% in profits in the previous seven days.
2. The crypto market has been weak in 2023 and BTC has been more fragile than other digital assets.
3. The recent crisis between Gemini and the Digital Currency Group (DCG) has added fuel to investor hesitation, as they fear a potential liquidation of one of their products to pay off their debt.
The crypto market has been volatile in the last few months, with Bitcoin (BTC) experiencing the brunt of the price swings. After a failed attempt to reclaim previously lost territory, BTC has been trading in a sideways pattern for the last 24 hours. In the previous seven days, the digital asset has recorded 1% in profits, which is a far cry from other digital assets like Ethereum (ETH), Cardano (ADA), Litecoin (LTC), and more, which have seen gains north of 6% and 12%.
The current price action of Bitcoin has caused investors to become hesitant, as there is ambiguity surrounding the macroeconomic conditions. The recent crisis between Gemini and the Digital Currency Group (DCG) has only added fuel to the investors’ hesitancy. DCG owns the crypto lender Genesis, which owes Gemini Earn customers billions of dollars. If the first of these companies decides to liquidate one of their products to pay off its debt, the price of Bitcoin and other cryptocurrencies will likely trend to the downside.
The crypto derivatives market has also felt the effects of investor hesitation, as expectations of a spike in Volatility due to the New Year have decreased. The report from crypto exchange Deribit claims that market participants have been “hesitant” to jump into the current price action due to the Gemini-DCG deadlock.
With the current market conditions and the ongoing crisis, it is difficult to predict what the future holds for Bitcoin and the crypto market in general. Investors should remain cautious and vigilant in their trading decisions and be wary of any potential risks that may arise in the future.