AD
AD
News

Bitcoin Falls 15% to $40,000 Just 12 Days After BTC ETF Approval – What’s Next, $30,000 or $50,000?

Collin BrownBy 0Edited by Jeff Taylor 23. January 20243 Mins Read
  • Bitcoin experiences a significant drop to $40,000, marking a 15% decline just days after the introduction of BTC ETFs.
  • Speculations arise about Bitcoin’s next move: Will it fall to $30,000 or rebound to $50,000?

In the wake of a broader cryptocurrency market sell-off, the BTC price has experienced a notable drop. Recent analyses by CoinGlass, a renowned cryptocurrency derivative data analysis platform, reveal that in the past 24 hours, 77,623 traders were liquidated.

The total liquidations amounted to $211.20 million. This liquidation process is defined as the forced closure of a trader’s positions in the cryptocurrency market, typically occurring when a trader’s margin account is unable to sustain their open positions due to significant losses or insufficient margin for maintenance requirements.

Since the launch of the first exchange-traded funds (ETFs) that invest directly in Bitcoin on January 11, the cryptocurrency has seen a nearly 20% decline. On the day these ETFs, backed by major entities such as BlackRock Inc. and Fidelity Investments, were introduced, Bitcoin momentarily surged to $49,021.

A report by CNF highlights that Grayscale Investments has significantly impacted the cryptocurrency market with a substantial Bitcoin transfer to Coinbase, valued at $623 million. Some analysts interpret this as a potential indicator of an impending massive sell-off.

What lies ahead for Bitcoin – a drop to $30,000 or a rebound to $50,000?

Wu Blockchain, in a recent tweet, noted that BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust, has received 4,808 BTC (approximately $194.4 million) from Coinbase Prime. The Trust currently holds 33,431 BTC (approximately $1.33 billion), as reported by Lookonchain.

Further insights from Wu Blockchain’s tweets reveal that Bloomberg analysts observed robust trading volumes in U.S. spot Bitcoin ETFs. On January 22, the trading volume exceeded $2 billion, with GBTC (Grayscale Bitcoin Trust) accounting for over half of this ($1.013 billion).

Notably, trading volumes for Fidelity’s offerings have surpassed those of BlackRock for two consecutive days. It’s speculated that approximately 35% of GBTC outflows were redirected to other spot Bitcoin ETFs.

As the market adjusts to these developments, Bitcoin’s price hovers around the $40,000 mark. Experts suggest that this correction was anticipated following the ETF approval and predict further declines, potentially reaching $30,000 again.

The selling pressure from the GBTC continues to influence market dynamics. Notably, Grayscale has recently moved almost $1 billion worth of Bitcoin to Coinbase, potentially for sale. Currently, BTC trades at $40,049.27, reflecting a 2.40% decrease over the past day and a 6.13% decline over the past week, as illustrated in the chart below.

This pricing trend underscores the heightened volatility and unpredictability in the cryptocurrency market, particularly in the wake of major financial developments like the introduction of BTC ETFs.

Recommended for you:

Subscribe to our daily newsletter!


>> Subscribe <<

          No spam, no lies, only insights. You can unsubscribe at any time.

This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

Related Posts

Exit mobile version