Significant Alert Issued Over Potential Bitcoin Value Depression, Amplifying 'Death Cross' Collapse Anxiety
Bitcoin and crypto prices have been stagnant lately, with traders waiting eagerly for a significant announcement from Donald Trump's administration. Despite Goldman Sachs betting on Bitcoin post-Trump's election victory and Elon Musk raising questions about the U.S. gold reserve, the digital currency is struggling to break past $100,000 per Bitcoin.
Influential Bitcoin executive Samson Mow has voiced concerns about "price suppression" as Bitcoin nears a so-called "death cross." At the Consensus Hong Kong crypto conference, Mow, CEO of Jan3 and Pixelmatic, suggested that the price movement looks manufactured, indicating a potential price suppression. Technical Bitcoin price analysis points towards a breach of this "death cross," which some fear could herald a Bitcoin price crash.
Abu Dhabi's $1 trillion sovereign wealth fund's purchase of BlackRock's Spot Bitcoin ETF marked the start of a global Bitcoin adoption race. BlackRock, a key player in the campaign for a Spot Bitcoin ETF approval, led the way with a fleet of Bitcoin funds debuting in January 2024. These funds have since surged to become some of the fastest-growing ETFs in history, with U.S. Spot Bitcoin ETFs breaking $100 billion in net assets for the first time in November.
In recent weeks, however, these U.S. Bitcoin ETFs have recorded net outflows, prompting concern. The Crypto Fear and Greed Index, a gauge of market sentiment, has now entered "fear" territory, indicating a lack of enthusiasm in the crypto market. Alex Kuptsikevich, FxPro's chief market analyst, noted that this stability has dampened sentiment in the market, failing to attract sell-off hunters or counter-trend traders.
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In January 2025, President Trump issued an executive order titled "Strengthening American Leadership in Digital Financial Technology." The order aims to provide regulatory clarity, support financial inclusivity, and back lawful USD-backed stablecoins. It also prohibits the establishment or issuance of a U.S. Central Bank Digital Currency (CBDC) while affirming support for USD-backed stablecoins.
The market initially expected an executive order supportive of the digital asset sector but retreated temporarily when it did not materialize on Trump's first day in office. However, the subsequent announcement has been viewed positively, potentially boosting the crypto market. Regulatory reforms are expected to foster a more supportive environment for blockchain innovation, attracting more investment and driving innovation in the sector.
The market may still experience volatility due to the inherently high-risk nature of cryptocurrencies and the evolving regulatory landscape. Despite this, the presence of pro-crypto voices in regulatory positions and the introduction of memecoins associated with Trump have the potential to influence the broader crypto market.
Reportedly, the stagnant Bitcoin price and struggling crypto market have led to pressures, resulting in layoffs at some crypto-related companies. Despite recent positive regulatory announcements, the Crypto Fear and Greed Index suggests a lack of enthusiasm in the market. According to a report, major Bitcoin mining companies have announced layoffs, including a 50% reduction in staff at one company. Moreover, crypto trading platforms have also reported a decrease in trading volumes, which could indicate a bearish sentiment in the market.