Bitcoin (BTC) hit its lowest price since early December after the start of Wall Street trading on January 23, as anger over the market sell-off mounted.
FTX heats up as Bitcoin plummets
Cointelegraph Markets Pro and TradingView We tracked the price movement of BTC as it fell to $38,505 on Bitstamp.
At the time of writing, Bitcoin had barely recovered, but it faced the now-familiar cocktail of institutional declines and weak demand to regain nearly two months of gains.
Despite the offloading of billions of dollars of Bitcoin this month, all eyes are on the Grayscale Bitcoin Trust (GBTC), a massive investment vehicle that still manages over $20 billion in assets. Ta.
On January 23, approximately 15,200 more BTC ($590 million) was transferred from known GBTC holdings to custodian Coinbase, according to data from cryptocurrency intelligence firm Arcam.
Grayscale registration 15,222 $BTC(from $588.5 million) #CoinbasePrime Again 10 minutes ago.#grayscale Deposited 79,213 $BTC(from $3.27 billion) #CoinbasePrime Since then #ETF It exceeded .
According to Arkham, #grayscale Currently holding 535,755 items $BTC ($20.68 billion).https://t.co/CdjVrnKSYx pic.twitter.com/Oq9RglF7Fz
— Lookonchain (@lookonchain) January 23, 2024
This was a slight decrease from the previous day, but commentators remained skeptical as the final numbers had not yet been confirmed.
“At least it’s down from yesterday,” popular trader Daan Crypto Trades wrote in part of his article. reaction On X (old Twitter).
“Net flows for all ETFs were slightly negative yesterday, so other ETFs are still doing a decent job of absorbing.”
Daan Crypto Trades noted the performance of its new spot Bitcoin exchange-traded fund (ETF) in the US, saying funds are flowing in to counter the GBTC withdrawal.
Some blamed the forced liquidation and offloading by defunct exchange FTX, which held significant GBTC holdings before its demise, rather than GBTC operator Grayscale.
“Remember, selling GBTC for BTC does not depress the price of Bitcoin. It is possible to sell it for USD and keep it in USD,” CEO of Bitcoin technology company Blockstream said Adam Back. explained.
“The people who are selling USD are forced liquidations, bankruptcy sales like FTX. So we don't know if there is a lot of net short USD left after the FTX $1 billion bankruptcy sale.”
Will the Bitcoin ETF “sell the news” reaction fade soon?
BTC longs faced another tough day when it comes to spot liquidations.
Related: Arkham identifies on-chain address of Bitcoin ETF discovered
According to the latest data from Statistical Resources, the total amount of longs lost in the two days ending January 23rd reached $110 million at the time of writing. coin glass.
Optimists therefore opted for a long-term view, arguing that current downside factors cannot continue to put pressure on the market indefinitely.
We're currently moving towards a news sales celebration, but we're not there yet.
There is a noticeable change in psychology today, the bears are celebrating and the bulls are angry at the bears.
I'm still relaxing and waiting for prices to come down, as I always have. https://t.co/RU4IJ3oyCk
— ColdBloodShill (@ColdBloodShill) January 22, 2024
Meanwhile, Eric Balchunas, a dedicated ETF analyst at Bloomberg Intelligence, thought there was reason to celebrate Bitcoin's performance in 2023.
Over the past 12 months, BTC/USD has delivered a 75% return, significantly outperforming popular investments such as stocks.
“How spoiled are you to be living in fear right now? If you don't have perspective, you're going to be forever miserable,” he said. I have written Some of X's comments.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
