Bitcoin (BTC) held close to $16,500 at the November 23 Wall Street open as US markets awaited Thanksgiving cues.
Greyscale, GBTC still dominates crypto sentiment
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rejected volatility after fresh two-year lows the previous day.
The pair kept analysts guessing the day before US markets closed for the Thanksgiving holiday, with crypto commentators still focusing on Digital Currency Group (DCG).
Potential liquidity problems with DCG-owned Genesis Trading continued to agitate those already anticipating further losses on Bitcoin and altcoins.
As Cointelegraph reported, concerns had already spread to cast doubt on the future of Grayscale Bitcoin Trust (GBTC), the largest institutional investment vehicle for Bitcoin with assets under management worth over $10 billion.
On November 22, Grayscale’s ex-CEO Barry Silbert issued a letter to DCG shareholders, much shared on social media, to boost morale.
“Not sure how to interpret the mixed reports around DGC, GENESIS, Grayscale, but Barry Silbert’s letter yesterday gave the crypto market some hopium,” analytics resource Material Indicators wrote in part of a Twitter thread on the day.
It added that announcements about GBTC could still come after hours in a potential volatility catalyst.
An accompanying chart of buying and selling pressure on the largest global exchange Binance showed strong resistance in place just below $17,000.
On the buy side, only $15,000 provided solid support at the time of writing, with the bulk at $14,000.
“Never seen the feeling so bad”
Commenting on the overall state of the crypto market following the FTX debacle, popular commentator William Clemente said sentiment should not be confused with Bitcoin’s underlying strength.
Related: Bitcoin May Need $1B More On-Chain Losses Before New BTC Price Bottom
“Never seen the feeling so bad,” he recognized.
“Worries about all centralized companies in the industry, people giving up, losing hope, depression. Meanwhile, the fundamentals of Bitcoin are completely unchanged. Posting this to revisit when BTC pushes to new highs in a few years.”
According to the classic benchmark, the Crypto Fear & Greed Index, there was still room to fall, with a score of 22/100 which is still more than double what traditionally accompanies bear market bottoms.
“The word death has circulated rapidly around crypto platforms in November,” research firm Santiment added in own insights 22 Nov.
“As one of the more bearish sentiment words, this is a sign that traders are giving up on the markets rebounding. Ironically, this capitulation is historically when markets rebound.”
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