BIT Price Plunges as $95M BitDAO Token Unlock Looms
• BitDAO’s coin BIT token price dropped 21% on Thursday as the market shifted focus to the upcoming token unlock.
• Data shows that there will be tokens worth $95 million that will be unlocked in the next five days.
• The current batch of tokens will finish being unlocked in September 2024 and Mantle’s launch is also contributing to the bearish trend in BIT price.
BitDAO Token Unlock Set To Dilute Market
BitDAO’s coin, BIT token, retreated to a low of $0.5073 on Thursday, which was about 21% below its highest level this year. The bearish sentiment is due to the upcoming token unlock that is expected to dilute existing holders and put pressure on the token’s value. Data compiled by TokenUnlocks shows that there will be tokens worth $95 million that will be unlocked over the next five days. Furthermore, BitDAO’s current batch of tokens are set to be fully unlocked in September 2024.
Mantle Launch Fades
The enthusiasm surrounding Mantle’s launch has also contributed to the bearish trend in BIT price. Mantle is a layer-2 network similar to Polygon, Arbitrum and Optimism which launched last month but now appears to have faded from market attention; contributing further downward pressure on BIT prices.
BIT Price Prediction
The 4H chart shows that BIT price has been declining steadily with it dropping below both its 50-day and 25-day moving averages. The MACD remains below the neutral level too; indicating further downside potential for this cryptocurrency pair.
About BitDAO
BitDAO is a decentralized platform making it possible for people to build dApps built on blockchain technology such as Ethereum and USD Coin among other digital assets like Tether (USDT). It uses these assets to provide funding for promising developers mainly through BitDAO tokens with only a small portion coming from FTX Token (FTT).
Conclusion
Overall, BitDAO’s upcoming token unlock presents a downside risk for its coinBITtoken as an increase in available supply tends to dilute existing holders‘ positions leading to lower prices for them overall; compounded by waning enthusiasm around Mantle’s launch exacerbating this effect even further.
