2024-01-13 11:34:19
Bitcoin fell 9% on Friday amid new concerns about GBTC. The exchange rate finally peeked below 42,000 dollars, but from there the price of BTC quickly bounced back BTC Price.
Enthusiasm in the market has waned
After Thursday’s euphoric mood, enthusiasm has waned. After Bitcoin ETFs began trading on the American stock exchange, the price of Bitcoin reached a local peak of $49,000 on Thursday. However, the sudden increase of more than 10% was not sustainable. The price began to fall more and more significantly on Friday afternoon despite the general optimism surrounding Bitcoin ETFs.
At the close of the market on January 12, American time, the price of BTC not only lost the positive yield generated during the hype around the ETF, but also turned into a negative.
Bitcoin finally fell as low as $41,730 at 10:25 p.m. on Friday, bringing its 24-hour loss to about 9%. Just one hour later, however, the price of Bitcoin started to recover and returned to the $43,000 level, with a market capitalization of $840 billion.
The crypto market as a whole also went down, falling 5.3% in 24 hours on Friday. Bitcoin BTC Price 7.7%, Solana SOL Price 9.2%, Avalanche (AVAX) 9.1%, Cardano 6.2%, XRP XRP Price 5.5 %, Ethereum ETH Price and BNB BNB Price fell 3.9% in one day.
Could GBTC papers be behind the fall in the bitcoin price?
A BTC the reason for the price drop is unclear. Spot Bitcoin ETFs have attracted significant demand, with over $4 billion in ETF turnover on the first day of trading, while the largest BTC exchanges are registering $50 billion in daily turnover. This increased demand was also supposed to increase the price of Bitcoin. However, the initial enthusiasm waned by the end of the second day.
Bitcoin last saw similarly low prices on January 3rd. This is when the price of BTC began to rise as investors began to price in the news of the upcoming spot ETF approvals. It is also conceivable that the current fall is the “sell the news” expected by many – that is sell your news event it could be.
However, there are other factors as well. SkyBridge Capital is founded by Anthony Scaramucci raisedthat the falling price of Bitcoin is a of the sale of shares from the Grayscale GBTC fund can be attributed to, which was converted to an instant Bitcoin ETF by investors on Thursday. CNBC’s Ran Neuner similarly suggested that GBTC’s Bitcoins could have re-entered market supply without directly investing in Bitcoin ETFs. Bloomberg analyst James Seyffart disputed this explanation. On the first day of trading, $95 billion worth of GBTC paper was sold, but this was only a fraction of what many expected.
Further negative developments may have also influenced investor sentiment, indirectly affecting Bitcoin trading and supply. These events may have included:
- Vanguard’s decision to exclude spot Bitcoin ETFs from its platform,
- the investigation of the US judiciary against the SEC for its failure to secure X’s account, and
- Senator Elizabeth Warren’s objection to the SEC’s ETF approval decision.
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