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In a surprising turn of events, the Bitcoin (BTC) price dropped 3% on Monday morning, sparking concerned reactions from investors.
Bitcoin is now trading for $40,620 – and appears to be heading to test the support zone around $40,000.
Despite this bearish backdrop, the Bitcoin Minetrix (BTCMTX) ICO is nearing a significant milestone, having almost reached $10 million in funding.
Investor Selloff Weighs Heavily on Bitcoin Price
Bitcoin’s decline appears to be linked to a change in investor behavior following the launch of spot BTC ETFs in the US.
The downtrend has been attributed to investors taking profits and exiting positions, particularly in the Grayscale Bitcoin Trust (GBTC), which recently transitioned to a spot BTC ETF.
GBTC’s former structure, accessible only to accredited investors with a six-month lockup period, has changed – allowing investors to redeem their shares for Bitcoin directly.
This change has resulted in over $2.2 billion exiting the fund in the last week, with Grayscale itself transferring substantial BTC amounts to Coinbase for sale, adding to the bearish pressure.
Furthermore, the market seems to have already priced in the ETF approvals, leading to a “sell the news” reaction from investors.
As a result, the entire crypto market has mirrored Bitcoin’s decline, with CoinMarketCap data showing the global crypto market cap is down 3% in the past 24 hours.
Traders Eye Potential Support Levels as BTC Struggles
With Bitcoin’s price hovering just above $40,000, traders are closely monitoring nearby areas for support.
For example, Twitter analyst Skew has identified bid support around $40,500, as evidenced by Binance’s BTC/USDT order book liquidity data.
Despite this potential support, a further drop below $40,000 is a possibility, with some market pundits considering areas above $35,000 for long positions.
Crypto Tony on Twitter stated, “Bring me $38,000 at once,” – hinting that he sees substantial value and potential for a bounce around that level.
Looking ahead to this week, key US economic data points, such as the preliminary Q4 GDP and December’s PCE index, are set to be released.
These economic releases, along with the Fed’s next rate decision on January 31, could significantly impact crypto market sentiment.
So, even though Bitcoin may be struggling, any positive macroeconomic news or dovish Fed signals could spark a rapid recovery in the coin’s value.
Innovative Stake-to-Mine Approach Fuels Hype for Bitcoin Minetrix’s Launch
In contrast to the broader market’s uncertainty, a new project called Bitcoin Minetrix is gaining significant attention and showing positive momentum.
Having raised over $9 million in its presale, Bitcoin Minetrix introduces an innovative Stake-to-Mine mechanism that veers from the traditional Proof-of-Work (PoW) approach.
This mechanism allows users to earn Bitcoin rewards by staking BTCMTX tokens – making Bitcoin mining more accessible and energy-efficient.
Unlike PoW mining, which requires advanced hardware and technical expertise, Bitcoin Minetrix allows anyone with BTCMTX tokens to participate.
This ease of access could significantly expand the mining community and boost the overall hashing power of the Bitcoin network.
Moreover, Bitcoin Minetrix boosts security and transparency by using smart contracts on the Ethereum blockchain, which have been thoroughly audited by Coinsult.
On top of all these features, Bitcoin Minetrix even has a separate staking protocol for BTCMTX, which currently offers yields of 72% per year.
The combination of passive income potential and exposure to mining rewards has been the main reason for Bitcoin Minetrix’s early presale success.
BTCMTX has even been ranked second on CoinSniper.net and ICOBench.com – two popular websites for evaluating new crypto projects.
With the planned exchange listings drawing nearer, the hype around BTCMTX’s potential has reached a fever pitch.
YouTuber Jacob Bury even posed the question of whether it’s the best crypto to buy now – highlighting the immense upside that could result from getting in early.
