Bitcoin Bounces Back Above $40,000
Despite facing a heavy hit on Tuesday, Bitcoin (BTC) has managed to recover and break above the $40,000 mark again. According to CoinGecko data, the largest cryptocurrency by market cap has bounced above $40,000 multiple times on Wednesday and is currently sitting at $40,050, up over 2% for the day.
Price Drop Due to GBTC Outflows
The recent drop in Bitcoin’s price can be attributed to outflows from Grayscale’s Bitcoin Trust (GBTC). As GBTC transitioned to a proper spot exchange-traded product (ETP), investors were now able to redeem shares, leading to over half a billion dollars worth of GBTC being cashed out in the first few days. This selling pressure affected not only Bitcoin but also the rest of the cryptocurrency market.
Calming Selling Pressure
However, the selling pressure seems to be calming down. Bloomberg ETF expert Eric Balchunas reported on Twitter that GBTC’s outflows on Tuesday were not as large as expected and had decreased from Monday’s tally. This could explain why Bitcoin is experiencing an upward trend after recent losses.
GBTC Sends BTC to Coinbase
Arkham Intelligence data revealed that GBTC had sent over $213.8 million worth of BTC to Coinbase, its custodian. This indicates that GBTC is liquidating its holdings.
Ethereum and Other Gainers
Ethereum (ETH) has also seen a decline since the market crash, down more than 14% in the past week. However, it is currently trading at $2,235 with a 1% increase for the day. Other cryptocurrencies like Solana (SOL) and Avalanche (AVAX) have experienced gains of 5% and 8% respectively.
Overall Market Cap
The total cryptocurrency market cap stands at $1.63 trillion, showing a 2.8% rise in the past 24 hours, according to CoinGecko.
Hot Take: Bitcoin Recovers Above $40,000 After Recent Drop
Despite a significant drop, Bitcoin has managed to bounce back above $40,000. The selling pressure caused by GBTC outflows seems to be calming down, leading to an upward trend in Bitcoin’s price. Ethereum and other cryptocurrencies have also shown some recovery after recent losses. Overall, the cryptocurrency market cap has experienced a slight increase in the past 24 hours.
By
By
By
By