Bitcoin Price Takes a Hit After Spot Bitcoin ETFs
The approval and listing of spot Bitcoin ETFs on exchanges have caused Bitcoin’s price to drop by over 15% from $48,969 to $40,297. This has also resulted in a significant decrease in trading volumes on crypto exchanges.
Narrative of GBTC Selling Bitcoin Holdings Debunked
Contrary to popular belief, the current correction in Bitcoin’s price is not due to Grayscale Bitcoin Trust (GBTC) selling its Bitcoin holdings. Other spot Bitcoin ETFs such as BlackRock, Fidelity, and Bitwise have actually made net purchases of about 72K bitcoins. This indicates an increase in inflow and trading volumes reaching billions.
Bitcoin Selling by Holders
The recent selloff in Bitcoin has been driven by holders, including short-term traders and whales, who took advantage of the “sell-the-news” event to profit from the recent rally. On-chain metrics and indicators suggest that the price correction may not be over yet and that sellers are still actively selling.
Predicting a Short-Term Correction
CryptoQuant founder and CEO Ki Young Ju warns of a short-term correction in BTC price after a 15% drop in the last few days. However, he believes that this is part of a long-term bull market cycle that will continue until Bitcoin is fully distributed to retailers. The overall outlook remains positive.
Hot Take: BTC Price Shows Resilience Amidst Correction
Despite the recent correction, BTC price has shown resilience by bouncing back with a 1% increase in the past 24 hours. It is currently trading at $41,659 with a low of $40,297 and a high of $42,134. However, trading volume has decreased by 16%, indicating a decline in trader interest.
Source: CryptoQuant insights
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