The price of BTC rebounded to $33K as Twitter CEO Jack Dorsey’s payment firm, Square Inc, confirmed to build a Bitcoin hardware wallet and custody service.
Based on analysts’ data, BTC/USD traded 2% higher in an hour last Friday. It hit local highs of $33,700 on Bitstamp. However, it had been marked by a trip lower last Thursday with a test of $32,000 support which went on the back of a sudden short selling on Bitfinex.
Now that it bounced back with $33,000 support, traders are hopeful that the existing short-term theories could still play out.
An analyst stated that Bitcoin still holds a critical level of support, and it potentially makes a new higher low. In addition, it is likely that the price will jump to as high as $39,000 if it breaks the start of a resistance band at $35,500.
Furthermore, the recent price rebound was followed by an announcement from Square Inc. In the announcement, they confirmed that they would be developing a mainstream crypto hardware wallet. The decision came a month after Dorsey said that Square was considering making one.
Alongside the confirmation, it was also stated that personal hardware is non-custodial. It means that crypto holders are still in control of their private keys instead of letting third parties like crypto exchanges handle it for them. The wallet will offer a multi-signature transaction that requires two or more private keys to sign and send a transaction.
It will be used specifically for enabling assisted self-custody. This suggests that Square Inc might play some role in the key process. Additionally, it will prioritize mobile use, wherein it will be integrated with smartphones and will be distributed globally.
Bitcoin Price Movement from GBTC Impact
An analyst projected that the price of Bitcoin wouldn’t move even after Grayscale’s huge 16,000 BTC unlocking date.
In the latest market update released last Wednesday, analysts downplayed the famous theory that the Grayscale Bitcoin Trust (GBTC) will cause BTC’s price volatility in the preceding weeks.
Based on reports, GBTC is due to unlock or release a huge amount of Bitcoin after its six-month lock-up period.
The size of the unlocking that was set for this month led to worries that the market volatility will likely increase, which hinders a potential recovery. For example, the largest unlocking date will be July 18, when 16,240 BTC will be available. Currently, that will be equivalent to $530 million. However, an expert said that there is a reason to be concerned for QCP users.
The platform stated that the upcoming unlocks are for institutional holders who directly subscribed to GBTC six months ago.