Bitcoin’s (BTC) price is down almost 3% since yesterday ahead of today’s FOMC meeting, as investor sentiment turns cautious.
Major altcoins followed Bitcoin lower, with Ethereum (ETH) and Solana (SOL) also posting losses.
While the broader crypto market struggles, the Bitcoin Minetrix (BTCMTX) ICO continues to show strength, having just passed the $10 million funding milestone.
Fed Worries & Huge Liquidations Send Bitcoin Below $43k
Bitcoin is now below the key psychological level of $43,000 as the bears take control ahead of the Fed’s policy meeting.
BTC’s price drop has dragged the entire market down, with CoinMarketCap data showing the overall crypto market cap has fallen to $1.64 trillion.
The slide also led to over $115 million in long liquidations in the last 24 hours, according to data from CoinGlass.
Most of the liquidations occurred on Binance, OKX, and Bybit as overleveraged positions were stopped out.
Bitcoin’s technical picture has also weakened considerably, with price slipping below the 50-day exponential moving average (EMA) on the 1-hour chart.
The Relative Strength Index (RSI) on the 1-hour chart has also dropped to 48, indicating more room for downside.
With the Fed expected to provide insight into its interest rate plans for the coming months, investors are growing cautious – hence the adverse price action in Bitcoin and leading altcoins.
GBTC Outflows Drag Crypto Market Down
While factors like the Fed’s policies and technical breakdowns have contributed to Bitcoin’s latest slide, the crypto market is still reeling from recent developments with Grayscale’s Bitcoin Trust (GBTC).
The popular fund, which converted to a spot BTC ETF on January 16, saw massive outflows totaling $4.3 billion in recent weeks, according to a report from Bitfinex.
Investors likely took profits following GBTC’s long-awaited conversion, cashing in on discounts of over 50%.
Unsurprisingly, the outflows from GBTC have had a negative impact on the crypto market, contributing to Bitcoin’s price slide.
Even bankrupt crypto exchange FTX has played a role in the market turmoil, given that it had to offload GBTC holdings due to its own issues.
However, the good news for Bitcoin investors is that leading GBTC alternatives like BlackRock’s spot BTC ETF continue to make solid progress.
BlackRock’s ETF brought in $1.8 billion in fresh inflows over the past two weeks, highlighting the scale of institutional demand for Bitcoin.
So, although BTC’s price has taken a hit in the short term, the long-term outlook for Bitcoin remains positive.
Bitcoin Minetrix Defies Bearish Sentiment & Passes $10m Presale Milestone
While the broader market grapples with bearishness, there’s a beacon of hope for investors in the form of Bitcoin Minetrix (BTCMTX).
This presale project, which is defying the overall negative sentiment, has just breached the $10 million funding milestone, showcasing its resilience and potential.
The success of Bitcoin Minetrix’s presale can be attributed to several factors.
Firstly, its focus on real-world utility stands out, given that the platform aims to revolutionize the crypto-mining industry through its Stake-to-Mine model.
This model allows BTCMTX holders to stake their tokens and earn cloud mining credits – which can instantly be burned for hash power.
Secondly, Bitcoin Minetrix has a built-in staking protocol for the native BTCMTX token.
Using this protocol, BTCMTX holders can generate yields of 66% per year, providing another pathway towards passive income.
Furthermore, Bitcoin Minetrix’s presale structure incentivizes early participation, offering a lower BTCMTX price to those who invest the earliest.
At the time of writing, BTCMTX tokens are on offer for just $0.0132 – although this price will increase incrementally as time goes on.
Unsurprisingly, this strategic approach has been one of the key reasons why investors have clamored to buy BTCMTX before the token hits the open market.
All in all, while Bitcoin and the broader market struggle, Bitcoin Minetrix’s progress demonstrates the appeal of projects with real-world applications.
With over 13,200 people actively participating in the project’s Telegram channel, Bitcoin Minetrix could be worth watching as it gears up for its official launch later this year.
