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Bitcoin (BTC) dropped 9% in a day, wiping out over $200 million in leveraged long positions as the price fell from $73,000 to $66,800. The drop follows as unexpected rise of inflation as measured by the US Consumer Price Index to 3.2%, lowering chances of rate cuts this year.
Another reason for the drop is profit-taking by traders who saw Bitcoin rise over 170% within a year.
However, Bitcoin spot ETFs are buying over 10,000 BTC daily, while the mining output is 900 within the same time frame. Because of that, this pullback could be short-lived. One Bitcoin alternative, called Green Bitcoin (GBTC), is defying the drop, however. It has now raised over $4.5 million for its ICO.
BTC Loses 9% Within a Day as Inflation Numbers Rise
After its meteoric rise in 12 months, returning over 170%, BTC has finally taken a step back. CoinGlass data shows over $200 million BTC long positions were liquidated within 24 hours, intensifying the price drop.
US CPI data unexpectedly rose to 3.2% year-over-year beating the estimates of 3.1%. This has cooled expectations that the Fed will start rate cuts this year.
Bitcoin’s drop confirms some on-chain data where the futures market momentum and “In the Money” indicators flashed a bearish signal, according to the crypto analytics firm IntoTheBlock.
While Bitcoin is having a respite from a 12-month rise, one Bitcoin alternative is showing massive investor interest as it raises over $4.5 million in its presale.
Green Bitcoin (GBTC) ICO Raises Over $4.5M
Green Bitcoin is a Bitcoin alternative that uses an environmentally-friendly proof of stake consensus mechanism, thanks to being built on the Ethereum network. This means you stake your GBTC to earn more GBTC tokens.
Staking comes with additional benefits, however. Once you lock your tokens, you can predict Bitcoin’s price and earn GBTC rewards based on your accuracy. This gamified approach to price prediction has caught the attention of investors, helping the project raise over $4.5 million during the GBTC token presale.
Interested traders and investors can buy GBTC tokens for $0.9542 apiece, which is likely to go up during the presale. Since it uses the Ethereum network as a base layer, you need ETH, USDT or a card to complete the purchase and to stake your tokens.
During the presale, staked GBTC tokens earn 112% annual percentage yield (APY), making it an excellent way to reward early buyers. Investors who want to learn more about this project should read the Green Bitcoin whitepaper.
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