Bitcoin Sell-off pinned to misreporting, Whales Outflow to Exchanges, and Analysts Comments
Bitcoin sets the tone of the cryptocurrency market, but prices on Jan 21 slipped, retracing from peaks. If this continues today, it may cause further losses in a FUD that's propagated by analysts' comments, misinformation about a possible double-spend in Bitcoin, and potentially fear caused by anti-USDT campaigners.
As the leading cryptocurrency by market cap--widely tracked by retailers and institutions, its performance often sets the tone for the crypto scene. On Jan 21, BTC fell, hauling down other digital assets. Analysts now pin this to possible FUD from Guggenheim's CIO Scott Minerd's comments on CNBC that the BTC price may crumble to $20k. This, coincidentally, was marked by an elevated flow of BTC from long-term whales to exchanges. This migration is often enough to scare weak hands as it signals their pessimism on the market and potential slide. Compounding this are comments from anti-Tether Limited campaigners who assert that the stablecoin issuer is to blame for manipulating market prices. Additionally, the absence of audited results means the coin is not backed 1:1 with cash or extremely liquid verifiable assets.
Impact on the BTC Price:
Neutral to Bearish. The BTC/USD price remains in range mode above $30k. This is bullish for traders, but the trend will quickly flip to bearish if prices sink below $30k. This will technically confirm a breakout pattern, a move that may precede bears aiming at $20k.
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