Bitcoin Defies Market Fears, Path to Further Gains Solidified

• Despite the news of Genesis filing for bankruptcy, the price of Bitcoin has remained unaffected, showing that the news was already priced in.
• This indicates that the current price of Bitcoin is fair and that it would take a true market-disrupting event to trigger another downtrend.
• This suggests that a fall below $20,000 could be farther away than the bears would like, putting Bitcoin in a position for more upside rather than decline.

The news of Genesis, one of the largest crypto lenders in the world, filing for bankruptcy did not have the negative effect on Bitcoin that many had anticipated. Despite the bad news, the price of Bitcoin has remained unfazed and continues to trade around the $20,900 level. This lack of negative movement from Bitcoin has solidified the asset’s path to the upside in the coming weeks.

This lack of reaction from the market indicates that the news of Genesis‘ bankruptcy was already priced into the asset. Participants in the crypto space had been expecting Genesis to eventually file for bankruptcy as the lender had been exploring its options for some time. Thus, the bias and fear that such news would bring had already been digested and factored into the price of Bitcoin.

The fact that the current price of Bitcoin appears to be a fair price suggests that there is more support for the current bull rally. This means that to trigger another downtrend for Bitcoin, it would have to be a true market-disrupting event. A deep pullback from a market correction becomes even more unlikely with this news. This suggests that a fall below $20,000 could be farther away than the bears would like, putting Bitcoin in a position for more upside rather than decline.

The unexpected lack of reaction from the market to the news of Genesis‘ bankruptcy has solidified Bitcoin’s path to the upside in the coming weeks. This shows that the news was already priced into the asset and that the current price of Bitcoin is fair. This suggests that a deep pullback from a market correction is now less likely and that a fall below $20,000 could be farther away than the bears would like. With this news, it appears that Bitcoin is on track to see further gains in the near future.