Bitcoin (BTC) hovered near $16,500 at the November 23 Wall Street open as U.S. markets awaited Thanksgiving cues.
Shades of Grey, GBTC still dominates crypto sentiment
The pair kept analysts guessing a day before US markets closed for the Thanksgiving holiday, with crypto commentators still focusing on Digital Currency Group (DCG).
Potential liquidity issues at DCG-owned Genesis Trading continued to excite those who were already anticipating further losses in Bitcoin and altcoins.
Like Cointelegraph reportedConcerns have already spread, casting doubt on the future of Grayscale Bitcoin Trust (GBTC), the largest institutional bitcoin investment vehicle with more than $10 billion in assets under management.
On November 22, former Grayscale CEO Barry Silbert released a letter to DCG shareholders, widely shared on social media in an attempt to boost morale.
“I’m not sure how to interpret the mixed news around DGC, GENESIS, Grayscale, but yesterday’s letter from Barry Silbert added some hopio to the crypto market,” analyst source Material Indicators wrote in part of the report. Twitter thread on that day.
He added that GBTC announcements could nevertheless come after hours in a potential volatility catalyst.
An accompanying chart of buying and selling pressure on the largest global exchange, Binance, showed strong resistance just below $17,000.
On the buy side, only $15,000 represented solid support at the time of writing, with the major part at $14,000.
“I’ve never seen such bad sentiment”
Commenting on the general state of the crypto market after the FTX debacle, popular commentator William Clemente meanwhile said that sentiment should not be confused with Bitcoin’s underlying strength.
“I’ve never seen such bad sentiment,” he said acknowledged.
“Concerns about every centralized company in the industry, people giving up, losing hope, depression. Meanwhile, Bitcoin’s fundamentals are completely unchanged. Posting this to look at this again as BTC pushes to new highs in a few years.”
According to the classical scale, it is Crypto Fear & Greed IndexStill, there was room for downside, with a score of 22/100 still more than double what traditionally accompanies bear market bottoms.
“Word of dead spread quickly around crypto platforms in November,” research firm Santiment he added in his own observations on November 22.
“As one of the bearish sentiment words, this is a sign that traders are giving up on a market rally. The irony is that this capitulation is historically when markets rebound.”
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