Bitcoin has not moved as expected despite news of Genesis, one of the world’s largest crypto lenders, filing for bankruptcy. Bitcoin’s lack of negative movement in response to the news could strengthen the digital asset’s path to the upside in the coming weeks.
Bitcoin Remains Unfazed by Genesis
Despite the shocking news of Genesis’ bankruptcy finally becoming a reality, the price of bitcoin has yet to react negatively. In fact, the digital asset has barely responded to the news and continues to trade at the $20,900 level.
This suggests that Genesis’ bankruptcy notice has been priced into the asset’s price. It is understood that crypto lenders have been considering filing for bankruptcy for some time and have been exploring their options. So it makes sense that the bias and fear that the news will carry has been digested by the participants in the venue.
For bitcoin, this shows that the digital asset’s price is where it’s at. Since the current price level seems to be the same price, there is more support for the current bull rally. This also means that in order to trigger another downtrend for BTC, it would have to be a true market disrupting event.
A deep pullback from a market correction becomes even more unlikely with this news. This means that the fall below $20,000 could be further than the bears expect, putting the cryptocurrency in a higher position rather than declining.
BTC sees upside despite Genesis bankruptcy filing | Source: BTCUSD on TradingView.com
BTC Investors Looking For Expiration Options
On Friday, more than $580 million in bitcoin options are expected to expire, and while this is usually a cause for celebration for bears, BTC’s continued performance will make this a win for bulls who can get more out of the market.
Although there are some who expect inflation to get worse, such as JPMorgan Chase CEO Jamie Dimon, there is now a slowdown, which has reduced the pressure on bitcoin and the general crypto market at this point. With inflation easing, risk assets are seeing better performance, increasing the likelihood of price recovery rather than going down from here.
Bitcoin price is also sitting above the 50-day and 100-day moving averages. This at least strengthens the bullish momentum for digital assets for the medium term. Also, there is a lot of support for BTC just above $20,500 which is a deterrent to suffering. If BTC continues through the weekend, then a solid move above $21,000 can be expected next week.
The BTC price is changing hands at $20,949 at the time of this writing. It rose 1% in the last 24 hours and saw a significant rise of 10.34% in the last seven days, according to data from Coinmarketcap.