Grayscale Bitcoin Trust (GBTC) Unlocks Assets as Bitcoin (BTC) Price Struggles to Tread Water

Hougan went on to say, “These lock boxes have kept the price of bitcoin higher than it would otherwise have been in a free flowing market, which has been great.

Bitcoin price remained largely unchanged on Monday evening, following a turbulent day of trading.

The world’s largest cryptocurrency by market cap fell below the $62,000 level earlier in the day, as BTC price action pointed to a potential breakout from the 200-day EMA.

However, bitcoin recovered from the lows and was last seen trading at $62,205, which still marks a loss of 0.2% over the past 24 hours.

Over the past week, BTC price has risen by about 6.3%, while year-to-date gains now stand at a strong 122.3%.

Bitcoin price now sits far below the record highs of $69,000, which were last seen in early November.

But according to bitcoin miners, the flagship digital asset will need to attract tens of billions of dollars in new demand just to tread water.

“These lock boxes have kept the price of bitcoin higher than it would otherwise have been in a free flowing market, which has been great. But we are now unlocking these assets, thanks to the ETF and the passage of time. The result is that the bitcoin has to attract tens of billions of dollars in new demand just to tread water,” said Dave Hougan, head of institutional sales at Bitstamp.

Hougan went on to add that “we're not there yet, which is why bitcoin's price has to come down and quickly.”

“I think we’ve worked off most of the overhang at this point — for instance, we’ve seen GBTC assets stabilize. But we haven’t worked off all of it, and that’s weighing on markets today. When we do, It will feel great to see new demand translate more directly into rising prices,” Hougan concluded.

Other developments saw bitcoin miner Core Scientific announce a new partnership with Blockware Solutions.

The collaboration will see Blockware Solutions integrate its proprietary operating system into Core Scientific’s bitcoin mining fleet.

According to Core Scientific, the move will help to improve the efficiency and performance of its bitcoin mining operations.

Meanwhile, bitcoin mining difficulty is set to increase once again, following a 13.5% adjustment in early December.

Fresh data from BTC.com now shows that the next adjustment is expected to take place in about 10 days.

At the time of writing, bitcoin mining difficulty stood at 27.62 trillion, following a recent increase of 0.43%.

Technical Analysis

Bitcoin Analysis

BTC sat well below the 50-day EMA but remained above the 200-day EMA. The EMAs sent bearish near-term signals but bullish longer-term signals.

A BTC break above the $64,000 resistance level could signal a move to the 50-day EMA. A breakout from the 50-day EMA may bring the $69,000 resistance level into play.

On the other hand, a break below the $60,365 support level could give the bears a run at the 200-day EMA.

With a 31.03 14-Daily RSI reading, BTC may fall below the $60,365 support level before entering oversold territory.

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