In the In the realm of cryptocurrency, the latest Bitcoin price prediction becomes increasingly complex as the asset dips to $39,650, influenced by a blend of regulatory news and investment product dynamics. On Wednesday, Bitcoin registered a notable decline, trading at $39,653, marking a 1.03 percent decrease.
Contributing to this downward trajectory, a recent legal development has emerged from Canada, where a law enacted to halt cryptocurrency donations to demonstrators has been declared unconstitutional.
Simultaneously, a surge in withdrawals from the Grayscale Bitcoin Trust (GBTC) is exerting additional downward pressure on Bitcoin prices, spotlighting the sensitivity of the digital currency to both political and market forces.
Canadian Law Blocking Crypto Donations Ruled Unconstitutional
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 https://t.co/IaoJYrFMiK
— Trade Alerts, Trade Ideas and Crypto (@AlertTrade) January 24, 2024
The court ruled this measure as unreasonable and without lawful justification, asserting that the situation did not constitute a national emergency. The Canadian Civil Liberties Association heralds the judgment as a landmark decision, emphasizing that the Emergencies Act should only be invoked as a measure of last resort.
Although Finance Minister Chrystia Freeland has announced plans to appeal, this ruling underscores the importance of judicial oversight over governmental measures related to cryptocurrencies.
Amidst this backdrop of legal challenges and evolving government stance on cryptocurrency donations, Bitcoin’s role in funding the protests could lead to increased scrutiny and potential price fluctuations.
GBTC Withdrawals Intensify Downward Pressure on Bitcoin
Bitcoin has dipped below the $39,000 threshold, marking a two-month nadir largely attributed to significant investor pullbacks from Grayscale’s Bitcoin Trust (GBTC). 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.
GBTC Outflows keep Coming.
GBTC lost another 15K #BTC yesterday.
Follow live updates on our ETF Tracker. pic.twitter.com/QTpdstRwXZ
— Thomas | heyapollo.com (@thomas_fahrer) January 23, 2024
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 FTX, which offloaded a significant quantity of its GBTC holdings.
Bitcoin Price Prediction
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