Bitcoin Price Drops Below $41,000 as ETFs Go Live
Bitcoin (BTC), the largest cryptocurrency, has seen a significant decline below the $41,000 mark following the launch of exchange-traded funds (ETFs) for Bitcoin on January 12. The drop can be attributed to profit-taking and selling pressure, particularly from Grayscale’s Bitcoin Trust ETF (GBTC).
Grayscale’s Bitcoin Transfers Intensify
Grayscale, an asset manager, has been transferring large amounts of Bitcoin to Coinbase. Over the past few days, they have moved a total of 54,343 BTC ($2.313 billion) to Coinbase Prime during US stock market hours. These transfers have contributed to the downward trend in Bitcoin’s price.
Selling Frenzy Among BTC Miners
In addition to Grayscale’s selling spree, Bitcoin miners have also increased their selling activity ahead of the upcoming Bitcoin halving. In the past 24 hours alone, miners sold nearly 10,600 BTC ($455.8 million), adding to the selling pressure on Bitcoin.
The Impact on Bitcoin’s Price
As a result of these factors, Bitcoin is currently trading at $40,900 with a slight decrease of 0.2% in the past 24 hours. The downtrend has been observed across different time frames, with declines of 5%, 6%, and 7% over seven, fourteen, and thirty-day periods respectively. Despite these setbacks, Bitcoin has still gained an impressive 98% year-to-date.
Hot Take: Defending Key Support Levels
The focus now shifts to how Bitcoin bulls will defend the crucial $40,000 support level. If this level fails to hold, further price declines could be witnessed, potentially pushing the price down to $35,800. However, with the Bitcoin halving scheduled for April, optimistic investors hope that this event will trigger a significant bull run.
Featured image from Shutterstock, chart from TradingView.com
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