Search
Close this search box.

Bitcoin’s Selling Pressure May Soon Decrease

Table of Contents

You can also read this news on COINTURK NEWS: Bitcoin’s Selling Pressure May Soon Decrease
Bitcoin (BTC) bitcoin has fallen by 20 percent since the launch of the first exchange-traded funds (ETFs) that directly invest in and hold the largest cryptocurrency in the US on January 11. On the first day the ETFs, offered by giants like BlackRock and Fidelity Investments, were traded, Bitcoin’s price rose to $49,021 but has since dropped to $39,718 in early trading hours today, marking a 20 percent decline from that day’s level. Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors, provided some encouraging news for Bitcoin and altcoins amidst the painful period following the Spot ETF launch.
Bitcoin’s Selling Pressure May Soon Decrease
According to data from CoinGlass, the decline in BTC’s price and the widespread sell-off in the market caused a total liquidation of $225 million in the last 24 hours. Bitcoin has also been affected by more challenging macroeconomic conditions, as indicated by the strengthening of the US dollar. Additionally, significant selling pressure has emerged due to investors unwinding their GBTC arbitrage positions and the FTX bankruptcy estate liquidating its assets.

Following these events, Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors, delivered the good news that Bitcoin and altcoin investors have been waiting for. Farrell stated that the sales made by FTX could eliminate the surplus supply and that the intense selling pressure from GBTC could soon decrease, offering a reassuring message to investors.
Bitcoin ETF Inflows Remain Strong
Bloomberg analysts reported that the trading volume of spot Bitcoin ETFs in the US exceeded $2 billion on January 22, with GBTC contributing more than half of that amount ($1.013 billion). Fidelity’s trading volume surpassed BlackRock’s for the second consecutive day. Approximately 35% of the outflows from GBTC went to the other nine spot Bitcoin ETFs.
Data provided by Lookonchain revealed that BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust, received a significant inflow of approximately 194.4 million dollars worth of 4,808 BTC from Coinbase Prime. The iShares Bitcoin Trust currently holds approximately 33,431 BTC valued at around 1.33 billion dollars. This development coincided with the launch of nine new spot Bitcoin ETFs in the US on January 11. Additionally, GBTC, which manages assets worth 22 billion dollars, transitioned from a closed-end structure to a fully open-ended ETF. GBTC saw a net inflow of 1.2 billion dollars in the first six days after the transition.
Among the newly launched funds, BlackRock’s iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund emerged as significant buyers due to increasing investor interest, capturing a substantial portion of the total inflows. Grayscale’s spot Bitcoin ETF saw an outflow of 2.8 billion dollars during this period.
The post first appeared on COINTURK NEWS: Bitcoin’s Selling Pressure May Soon Decrease

Leave a Comment

Your email address will not be published. Required fields are marked *

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.

Related Posts

Posts is empty. Skip to content