bitcoin fell below $41,000 in the last 24 hours before recovering to surpass that level once again. This has become the current reality of the price of the flagship crypto token, which has continued to fall since the bitcoin-etfs-approved-by-us-sec/” rel=”nofollow”>bitcoin Spot ETFs Approved. This is surprising considering that these funds bitcoin-will-climb-30-after-etf-approval-analyst/” rel=”nofollow”>were projected to help increase the price of bitcoin upon launch.
Why the price of bitcoin could be falling
James Seyffart, Bloomberg analyst provided information on what could be the reason for the bitcoin price drop while revealed that bitcoin-etf-update-blackrock-1-b-aum-gbtc-sales/” rel=”nofollow”>GBTC in grayscale has seen an outflow of $2.2 billion since converting to a bitcoin Spot ETF. The Arkham Intelligence cryptanalysis platform also revealed that Grayscale had moved 9,000 btc from its wallets to Coinbase, suggesting an imminent sale.
Selling pressure of such magnitude would certainly affect the price of bitcoin, and that seems to be a plausible explanation for why the price of bitcoin has dropped lately. Jan3 and Bitcoiner CEO Samson Mow also echoed similar sentiments saying mentioned that GBTC selling pressure was driving prices down.
However, Mow believes that this trend “will not be a long process,” as he predicts that many GBTC investors will not be able to unload their shares because “the tax impact is too great.” However, JP Morgan will disagree as bitcoin-exposed-to-possible-15b-in-future-gbtc-sales-jpmorgan-says/?utm_medium=referral&utm_source=rss&utm_campaign=headlines” rel=”nofollow”>Investigation report The bank estimates that up to $3 billion could come out of the GBTC fund and many investors will be looking to make profits.
crypto analyst Ash crypto also recently made on how profit taking is one of the reasons why GBTC is experiencing this significant amount of capital outflows. He explained that many GBTC investors bought shares of the fund when it was trading at a price bitcoin-reaches-largest-discount-ever/” rel=”nofollow”>40% discount on bitcoinand now they are exiting their positions since that discount is now 0%.
<img decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/JQdOw2TT/" alt="Tradingview.com bitcoin Price Chart” width=”3266″ height=”1530″ loading=”lazy”/>
btc bulls make a play for control | Source: BTCUSD on Tradingview.com
bitcoin spot ETFs really live up to the hype
While Grayscale's GBTC continues to bleed, other spot ETFs appear to be living up to expectations, with impressive demand for these funds. bitcoin-etf-denial-could-cause-major-crypto-rugpull/” rel=”nofollow”>Nate Geracithe president of the ETF store, revealed that two (IBIT and bitcoin-spot-etf-fidelity-dtcc/” rel=”nofollow”>FBTC) of the nine spot ETFs (excluding GBTC) that already hit $1 billion in assets under management (AUM) just after five days of trading.
Specifically, BlackRock's IBIT (iShares bitcoin Trust) was the first to bitcoin-etf-update-blackrock-1-b-aum-gbtc-sales/” rel=”nofollow”>achieve this milestone in just four business days. Commenting on how impressive this was, bitcoin-etf-sec-engaging-exchange-approval/” rel=”nofollow”>Eric Balchunas, Bloomberg analyst noted that only two other ETFs ($GLD and $BITO) had done this so far, and neither of those funds faced as much competition as IBIT on the day it launched.
The demand for spot ETFs is evidently there, as two bitcoin spot ETFs have already reached a record previously held only by two other ETFs.
Featured image from Yahoo Finance, chart from Tradingview.com
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