BTC Drops to Lowest Price in Seven Weeks
During Tuesday morning’s Asian trading session, Bitcoin (BTC) reached its lowest price level in seven weeks, dropping to $39,500. This 3% daily decline has extended the BTC pullback to 18.5% from its high of $48,500 on January 10. Analysts believe that the correction could continue and result in a 30% drop, bringing Bitcoin prices down to $34,000.
Grayscale Selling Impacts Market
CoinGlass, an on-chain analytics platform, recently reported a liquidation heatmap that showed significant activity at the $34,000 level. Over the past 24 hours, there have been $225 million in liquidations, mostly from long positions in Bitcoin and Ethereum. CoinGlass pointed out that Grayscale is continuing to dump the market and still holds over 550,000 BTC in its Bitcoin Trust (GBTC).
Market Bloodbath and Decreased Discussion
Santiment, a blockchain analytics provider, noted that Monday was a bloodbath for the crypto sector. There has been a 35% decrease in discussion about BTC and a 21% decrease in discussion about ETH compared to before the ETF approval week. FUD (fear, uncertainty, and doubt) is starting to enter the picture, which could create opportunities for price bounces.
Elsewhere on Crypto Markets
The total market capitalization has declined by 2.8% to $1.65 trillion. Although Bitcoin has recovered slightly to reach $40,000, the short-term outlook remains uncertain. Altcoins like Solana (SOL), Avalanche (AVAX), Chainlink (LINK), and Litecoin (LTC) have experienced significant losses.
Hot Take: Bitcoin Faces Increased Selling Pressure
Bitcoin’s recent drop to its lowest price in seven weeks and the continuation of the correction has raised concerns among investors. With Grayscale’s ongoing selling and the significant liquidations in the market, BTC’s price could potentially drop further. The decrease in discussion and the presence of FUD add to the uncertainty surrounding the market. While Bitcoin has recovered slightly, the short-term outlook remains bearish. Investors should closely monitor market developments and be prepared for potential price bounces.
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