Cryptocurrency

Prime

Bitcoin

Grayscale Bitcoin Trust

Given the ongoing events in the crypto market, the latest <a href="https://cryptonews.com/news/bitcoin-price-prediction.htm">Bitcoin price prediction</a> has become increasingly complex as BTC dips to $39,650, influenced by a blend of regulatory news and investment product dynamics. 
On Wednesday, <a href="http://tradingview.com/symbols/BTCUSD/">Bitcoin</a> registered a notable decline, trading at $39,653, marking a 1% decrease. 
Contributing to this decline is a legal development from Canada. A law stopping cryptocurrency donations to demonstrators was ruled unconstitutional. 
At the same time, increased withdrawals from the Grayscale Bitcoin Trust (GBTC) add further downward pressure. This highlights Bitcoin’s sensitivity to political and market forces. 
<h2 id="canadian-law-blocking-crypto-donations-ruled-unconstitutional">Canadian Law Blocking Crypto Donations Ruled Unconstitutional</h2> 
 The Federal Court of Canada has deemed the Canadian government’s use of emergency powers to freeze cryptocurrency donations for truckers protesting as illegal. In February 2022, in reaction to the “Freedom Convoy” protests against COVID-19 restrictions, Prime Minister Justin Trudeau’s government employed the Emergencies Act to halt financial assets, including cryptocurrencies. 
Canada’s use of law freezing protesters’ crypto donations was unconstitutional: Court <a href="https://t.co/IaoJYrFMiK">https://t.co/IaoJYrFMiK</a> 
— Trade Alerts, Trade Ideas and Crypto (@AlertTrade) <a href="https://twitter.com/AlertTrade/status/1749982918951522640?ref_src=twsrc%5Etfw">January 24, 2024</a> 
&nbsp; 
The court deemed the measure unreasonable and unjustified, stating that it didn’t qualify as a national emergency. The <a href="https://ccla.org/press-release/emergency-is-not-in-the-eye-of-the-beholder-federal-court-grants-victory-to-ccla-in-emergencies-act-challenge/">Canadian Civil Liberties Association celebrates</a>&nbsp;this as a landmark decision. They stress that the Emergencies Act should be a last resort. 
Despite Finance Minister Chrystia Freeland’s intention to appeal, this ruling highlights the need for judicial oversight in government actions on cryptocurrencies. 
Given these legal challenges and the changing government view on cryptocurrency donations, Bitcoin’s involvement in funding protests may face more scrutiny and cause price volatility. 
<h2 id="gbtc-withdrawals-intensify-downward-pressure-on-bitcoin">GBTC Withdrawals Intensify Downward Pressure on Bitcoin</h2> 
 Bitcoin has dipped below the $39,000 threshold, marking a two-month nadir largely attributed to significant investor pullbacks from <a href="https://cryptonews.com/news/gbtc-etf-sees-another-515m-in-outflows-as-bitcoin-price-remains-below-40k.htm">Grayscale’s Bitcoin Trust (GBTC)</a>. Since its transition to a spot Bitcoin exchange-traded fund (ETF) on January 11, GBTC has seen an exodus of funds exceeding $3.4 billion. 
The persistence of this withdrawal trend raises market apprehension. Eric Balchunas, an ETF analyst at Bloomberg, reported a staggering $515 million withdrawal on January 23, leading to a 13% reduction in GBTC shares in circulation. 
UPDATE 
GBTC Outflows keep Coming. 
GBTC lost another 15K <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> yesterday. 
Total ETF flows were GBTC outflows offset +6K <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> for Blackrock &amp; + 4K <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> to Fidelity 
Follow live updates on our ETF Tracker. <a href="https://t.co/QTpdstRwXZ">pic.twitter.com/QTpdstRwXZ</a> 
— Thomas | heyapollo.com (@thomas_fahrer) <a href="https://twitter.com/thomas_fahrer/status/1749935401538904437?ref_src=twsrc%5Etfw">January 23, 2024</a> 
Despite some indications of the outflow abating, there remains a looming concern over potential further losses. The bulk of these recent outflows is ascribed to the beleaguered exchange <a href="https://cryptonews.com/news/just-in-ftxs-bankruptcy-estate-sold-22-million-gbtc-shares-leading-to-1-billion-gbtc-outflow.htm">FTX</a>, which offloaded a significant quantity of its GBTC holdings. 
<h2 class="c-message_attachment" id="bitcoin-price-prediction">Bitcoin Price Prediction</h2> 
On January 24, <a href="https://cryptonews.com/coins/bitcoin/">Bitcoin (BTC)</a> edged up modestly, marking a 0.33% increase to trade at $39,720. The digital currency, amid a volatile market environment, is approaching its pivot point at $39,947, delineated by the green line on the 4-hour chart. 
BTC/USD is facing immediate resistance at $40,884, with subsequent barriers at $41,791 and a more formidable one at $43,394, which could cap upward movements. On the downside, support is initially found at $38,618. Should bearish momentum intensify, further supports at $37,638 and $36,745 may come into play. Bitcoin Price Chart – Source: Tradingview 
The Relative Strength Index (RSI) is currently at 44, indicating neither overbought nor oversold conditions, suggesting a potential for movement in either direction. The 50-Day Exponential Moving Average (EMA) is at $40,494, slightly above the pivot point, hinting at a tussle between bullish and bearish sentiments. 
Chart analysis reveals a double top pattern with resistance looming around $39,950. Should Bitcoin fail to break through this level, a selling trend could be triggered. The overall trend for Bitcoin remains bearish as long as it stays below the $40,000 threshold. 
<h2 id="top-15-cryptocurrencies-to-watch-in-2023">Top 15 Cryptocurrencies to Watch in 2023</h2> 
 Stay up-to-date with the world of digital assets by exploring our handpicked collection of the best 15 alternative cryptocurrencies and ICO projects to keep an eye on in 2023. Our list has been curated by professionals from Industry Talk and Cryptonews, ensuring expert advice and critical insights for your cryptocurrency investments. 
Take advantage of this opportunity to discover the potential of these digital assets and keep yourself informed. <a style="text-decoration: none; color: white;" href="https://cryptonews.com/news/new-cryptocurrency.htm" target="_blank" rel="nofollow noindex noopener" data-darkreader-inline-color="">See the 15 Cryptocurrencies</a> 
Disclaimer: Cryptocurrency projects endorsed in this article are not the financial advice of the publishing author or publication – cryptocurrencies are highly volatile investments with considerable risk, always do your own research.

Bitcoin Price Prediction: Drops to $39,650 Amid Unconstitutional Canadian Law & GBTC Withdrawals

Table of Contents

Cryptonews.com

Other articles published on Jan 24, 2024

Manta Network Price Prediction: MANTA Soars 29%, But Experts Say Consider This Meme Coin Presale ...

Bitcoin Looks “Mad Heavy,” Could Dump If It Breaks Below $40K: Arthur Hayes

Bitcoin Price At Risk? Grayscale’s $335M Coinbase Transfer Stirs $30,000 Plunge Potential

The global stage is all set for Donald Trump’s return

Shiba Inu: SHIB to Launch Digital Identity in 2024, Shibdentity

Mixing it up: Coinbase Ripples Treasury With Letter Opposing Crypto Regulations

Join our free newsletter for daily crypto updates!