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In a surprising turn of events, Bitcoin (BTC) price fell 3% on Monday morning, sparking worried reactions from investors.
Bitcoin is now trading at $40,620 – and appears to be on track to test the support zone around $40,000.
Despite this pessimistic backdrop, the Bitcoin Minetrix (BTCMTX) ICO is approaching a major milestone and has reached nearly $10 million in funding.
Investor sell-off is taking a heavy toll on Bitcoin price
Bitcoin’s decline appears to be linked to a change in investor behavior following the launch of spot BTC ETFs in the US.
The downtrend was attributed to investors taking profits and exiting positions, particularly in the Grayscale Bitcoin Trust (GBTC), which recently converted into a spot BTC ETF.
GBTC's previous structure, which was only available to accredited investors with a six-month lock-up period, has changed – now investors can exchange their shares directly for Bitcoin.
This change has resulted in over $2.2 billion flowing out of the fund in the last week, with Grayscale itself transferring significant amounts of BTC to Coinbase for sale, adding to the downward pressure.
Additionally, the market appears to have already priced in the ETF approvals, leading to a “sell the news” reaction from investors.
As a result, the overall crypto market has reflected Bitcoin's decline, with data from CoinMarketCap showing that the global crypto market cap fell by 3% in the last 24 hours.
Traders are paying attention to potential support levels as BTC struggles
With Bitcoin price hovering just above $40,000, traders are closely watching surrounding areas for support.
For example, Twitter analyst Skew has identified supply support around $40,500, according to Binance BTC/USDT order book liquidity data.
Despite this potential support, a further decline below $40,000 is possible, with some market experts considering areas above $35,000 for long positions.
Crypto Tony stated on Twitter: “Bring me $38,000 immediately” – suggesting he sees significant value and potential for a bounce around this level.
Looking forward to this week, key US economic data such as preliminary fourth quarter GDP and December PCE index will be released.
These economic releases, along with the Fed's next interest rate decision on January 31, could significantly impact crypto market sentiment.
Even though Bitcoin may be struggling, positive macroeconomic news or dovish Fed signals could trigger a rapid recovery in the coin's value.
Innovative stake-to-mine approach fuels hype around Bitcoin Minetrix launch
In contrast to the uncertainty of the broader market, a new project called Bitcoin Minetrix is gaining significant attention and showing positive momentum.
After raising over $9 million in presales, Bitcoin Minetrix is introducing an innovative stake-to-mine mechanism that deviates from the traditional Proof-of-Work (PoW) approach.
This mechanism allows users to earn Bitcoin rewards by staking BTCMTX tokens, making Bitcoin mining more accessible and energy efficient.
Unlike PoW mining, which requires advanced hardware and technical expertise, Bitcoin Minetrix allows anyone with BTCMTX tokens to participate.
This ease of access could significantly expand the mining community and increase the overall hashing power of the Bitcoin network.
Additionally, Bitcoin Minetrix increases security and transparency through the use of smart contracts on the Ethereum blockchain, which have been thoroughly audited by Coinsult.
In addition to all these features, Bitcoin Minetrix even has a separate staking protocol for BTCMTX, which currently offers returns of 72% per year.
The combination of passive income potential and the use of mining rewards was the main reason for Bitcoin Minetrix's early pre-sale success.
On CoinSniper.net and ICOBench.com – two popular websites for evaluating new crypto projects – BTCMTX even took second place.
As the planned listings draw ever closer, the hype surrounding BTCMTX's potential has reached its peak.
YouTuber Jacob Bury even questioned whether it is the best cryptocurrency to buy now – noting the huge benefits that could come from getting started early.
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