Buying pressure: Describes the process when a large majority of market participants want to buy an asset rather than sell it. The overhang subsequently tends to drive demand, allowing sellers to call higher prices until demand is satisfied. This often leads to a positive price trend being started and maintained depending on the level of demand. As soon as the buying pressure subsides, the pace of the upswing slows down.
Technical term of the week
Digital Asset News
Bitcoin managed to jump above $23,000 on Jan. 21 after Asian investors in particular provided renewed strength. Data shows that the bitcoin price was able to generate enough momentum to climb to an interim daily high of just under 23,200 US dollars, the highest level since August 2022.The multi-month high is in clear contrast to recent fears about a new crash. So for now, BTC continues to provide positive surprises with its ongoing strength.
In this context, digital asset expert “Skew” points out that first and foremost the Asian market has given the starting signal for a strong weekend:
“Another upswing fueled from Asia. Asian buyers are catching the selling pressure from the market makers. They took down a big sell wall before another short squeeze followed.” However, doubts around Bitcoin remain despite the new highs, which is why some familiar voices never tire of urging caution. “The higher the bounce, the more violent the downturn will be for BTC,” as Toni Ghinea warns by proxy. Thus, the trader sees the current high as only artificially inflated.
Nonetheless, he can also take something positive from the current strength: “Whether it’s an artificial upswing or a real trend reversal, it’s nice that optimism has returned to the crypto market.”
One trader also sees the fact that whopping gains for bitcoin are still coming after the stock market closed out the week as another sign of a speculative bubble.
“No one who seriously wants to buy and hold crypto will wait until Friday for the stock market to close before doing so,” as the expert notes. Accordingly, “the intention would thus be clear.” So, this current market situation should be appreciated, the temporary opportunities for positione should be used, but not to declare an early bull market.
Crypto lender Genesis Global has actually now filed for bankruptcy. The firm has liabilities estimated at $1 billion to $10 billion and assets of roughly the same value, according to a document dated Jan. 19.
Previously, reports claimed that the company would consider filing for bankruptcy protection if it could not raise capital to overcome its liquidity crisis.
In a Jan. 19 press release, Genesis said it was in discussions with its advisors as well as “its creditors and parent Currency Group (DCG) to determine the most effective way to protect its assets and move the company forward. Genesis has now begun a court-supervised restructuring process to move these discussions forward.”
Genesis’ derivatives, spot trading, broker-dealer and custody businesses are not covered by this bankruptcy proceeding and will continue their operations, according to the firm. The firm also claimed it has more than $150 million in cash on hand that “will provide sufficient liquidity to maintain current operations and facilitate the restructuring process.”
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