Bitcoin (BTC) Price Surges 4% to Hover About $2.21 Trillion Despite Midterm Crypto Uncertainty

The crypto market surged nearly 4 percent in the past 24 hours to hover about $2.21 trillion on Tuesday, led by Bitcoin (BTC).

Cryptocurrency price today: The crypto market surged nearly 4 percent in the past 24 hours to hover about $2.21 trillion on Tuesday, led by Bitcoin (BTC). However, the world’s largest cryptocurrency remained below the key level of $60,000.

Midterm crypto uncertainty continued to increase overall fear and pessimism. Despite a relief BTC price rebound, Bitcoin’s fear and greed index dropped to 27 percent.

Notably, Bitcoin price surged over 3 percent in the past 24 hours to trade at about $57,222 on Tuesday during the early European session.

German Government Plays Poker

The German government has been a major Bitcoin holder over the past ten years, after seizing nearly 50k coins from movie2k.to. However, the country has been selling its Bitcoin holdings in the past 20 days and currently holds about 27,461 coins, worth about $1.5 billion.

While the country has mostly been using over-the-counter (OTC) options to liquidate its holdings, the German government has also been using centralized exchanges, thus significantly weighing down on bullish sentiment.

On Monday, the country made its largest on-chain movement of around 16k BTCs, worth nearly $1 billion. However, the country quickly accumulated back around 3,673 Bitcoins from centralized exchanges worth around $207 million.

The Impact from Mt.Gox Repayments Gradually Fades

The overall negative impact on the crypto industry from the Mt.Gox repayments has gradually declined in the past few days. Furthermore, more investors receiving the Mt.Gox funds are believed to be long-term holders.

The upcoming FTX cash distribution of nearly $16 billion in the fourth quarter is expected to add to the overall crypto buying pressure, thus quashing possible Mt.Gox sales.

What Next for BTC Price Action

Amid the heightened crypto fear uncertainty and doubts (FUD), Santiment noted that the chances of a market rebound are high. From a technical standpoint, Bitcoin price against the US dollar has been forming a bullish flag and is likely to rebound towards $72k soon.

However, a consistent close below $53k in the coming weeks will further increase the fear and trigger heightened crypto capitulation.

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