Bitcoin hasn’t moved as expected despite the news that Genesis, one of the world’s largest cryptocurrency lenders, has filed for bankruptcy. This lack of negative bitcoin movement in response to the news could cement the digital asset’s upward path in the coming weeks.
Bitcoin remains unfazed by Genesis
Despite the dreaded news of a bankruptcy of genesis finally becoming a reality, the bitcoin price has not reacted negatively. In fact, the digital asset has barely responded to the news and continues to trade around the $20,900 level.
What this shows is that the news of the bankruptcy of Genesis was already included in the price of the asset. It is understandable given that the crypto lender had been considering filing for bankruptcy for quite some time and has been exploring his options. So it makes sense that participants in the space have already digested the bias and fear that such news would carry.
For bitcoin, this suggests that the digital asset’s price is where it’s supposed to be. Since its current price level appears to be a fair price, then there is more support for the current bullish rally. It also means that in order to trigger another downtrend for BTC, it would have to be a true market disruptive event.
A deep pullback from a market correction becomes even more unlikely with this news. This means that a Drop below $20,000 could be further away than bears would likeplacing the cryptocurrency in a higher position instead of a fall.
BTC sees upside despite Genesis bankruptcy filing | Source: BTCUSD on TradingView.com
BTC investors look for expiring options
On Friday, more than $580 million worth of bitcoin options are expected to expire, and while this would normally be a cause for celebration for bears, BTC’s continued strong performance would make this a win for bulls who stand to gain more than market.
Although there are some who expect inflation to worsen, one example being JPMorgan Chase CEO Jamie Dimon, there is a slowdown for now, which has reduced the pressure on bitcoin and the broader crypto market at the moment. With inflation declining, risky assets are outperforming, raising the chances of a price recovery rather than a decline from here.
The Bitcoin price is also comfortably above its 50-day and 100-day moving averages. This, if nothing else, solidifies the bullish momentum of the digital asset in the medium term. Additionally, there is ample support for BTC just above $20,500, serving as a deterrent to bears in the meantime. If BTC holds up over the weekend, a solid move above $21,000 can be expected next week.
The BTC price is changing hands at $20,949 at the time of writing. It is up 1% in the last 24 hours and is seeing a significant rise of 10.34% in the last seven days, according to data from Coinmarketcap.
