Bitcoin (BTC) could face two potential roadblocks to its ongoing rally due to imminent increased selling pressure from events surrounding Grayscale and the U.S. government.
Amid the latest market resurgence, Bitcoin breached the $52,000 price threshold on Valentine’s Day for the first time since the 2021 bull run.
The asset has held above this price point, displaying remarkable resilience despite mild resistance witnessed at the recently-attained $52,500 high.
Bitcoin investors have expressed optimism of a sustained market run, but blockchain analytics resource Spot on Chain calls for caution, having identified two noteworthy events that could present intense resistance to the asset’s rally.
Two Events that Could Impact BTC
In a post on X this morning, Spot on Chain highlighted the approval bankrupt crypto lender Genesis received from a U.S. bankruptcy court to sell the shares of Grayscale Bitcoin Trust (GBTC) that it currently holds.
The shares, worth around $1.3 billion at the time of the report, would be sold off by Genesis this month to compensate creditors.
The #Bitcoin price has been on the rise for the past 7 days and finally broke the $52K mark again after 2 years!
However, there are two impending big threats to the short-term $BTC price. Can it overcome?
1. #Genesis was approved to sell 35M Grayscale Bitcoin Trust shares… pic.twitter.com/Qn7wbQXaDa
— Spot On Chain (@spotonchain) February 15, 2024
In addition, Spot on Chain pointed out the upcoming sale of 2,875 BTC tokens currently worth over $150 million by the U.S. government.
The assets were confiscated in 2021 by the Department of Justice (DoJ) from two individuals, one of whom is Ryan Farace, a drug dealer linked to the defunct dark web marketplace Silk Road.
Notably, the U.S. government currently holds 208,000 BTC valued at a whopping $10.9 billion. Spot on Chain revealed that they dumped 8.2K BTC valued at $248 million in July 2023 during a relief rally in the market. This dump resulted in a Bitcoin price drop.
As a result, the blockchain analytics platform has cautioned that the upcoming events involving the imminent GBTC shares sale by Genesis and the BTC auction from the U.S. government could pose a threat to Bitcoin’s current rally.
Bitcoin Retains Uptrend
However, it remains to be seen if the token can scale through the selling pressure. Proponents have argued that these events would not cause a substantial impact, given the increased demand for BTC.
Recall that BTC rallied to a two-year high of $52,043 yesterday before facing a mild resistance that dropped it below $52,000.
However, this resistance was not potent enough to trigger a substantial correction, as BTC held strong at the upper spectrum of the $51,000 zone. The asset recorded another wave of upsurge this morning, rallying past $52,000 again to a new high of $52,500.
While Bitcoin’s momentum has slowed, the firstborn cryptocurrency still trades above $52,000, currently changing hands for $52,152 at the reporting time. BTC is up 18% over the past seven days, and 100% in the last six months, as investor demand surges.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
