Bitcoin Plummets Below $39K, Erasing Gains Made In Two Months Following US Spot ETF Launch
Portfolio Pulse from Benzinga Neuro
Bitcoin's price has dropped below $39,000, erasing gains from the last two months since the U.S. launch of spot ETFs. The sell-off is partly due to the FTX bankruptcy estate selling shares of Grayscale's GBTC. Analysts suggest the ETF approval might mark a short- to mid-term price peak. Trading volume and circulating supply of Bitcoin have also decreased, while Peter Schiff comments on the bear market for Bitcoin ETFs.
January 23, 2024 | 12:14 pm
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Grayscale's Bitcoin Trust (GBTC) may face downward pressure as the FTX bankruptcy estate sells its shares, contributing to the recent Bitcoin price drop.
The sale of GBTC shares by the FTX bankruptcy estate is directly contributing to the increased supply and potential downward pressure on GBTC's price. Given the correlation between GBTC and Bitcoin prices, the negative sentiment surrounding Bitcoin's price drop is likely to affect GBTC in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80