Bitcoin, Ethereum, Dogecoin In Red As GBTC Bleeding Continues: Analyst Says Massive Correction For King Crypto Is On The Cards
Portfolio Pulse from Mehab Qureshi
Cryptocurrencies Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) are in decline, partly due to institutional sales from ETFs. Grayscale's GBTC has seen significant outflows since converting to a spot Bitcoin ETF, with FTX's bankruptcy estate selling a large portion of its GBTC shares. Analysts predict a massive correction for Bitcoin, while some assets like Bitcoin Cash and Loopring are being actively shorted on Binance. The S&P 500 and Nasdaq hit new highs, and key economic indicators are expected later this week.
January 24, 2024 | 3:37 am
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NEGATIVE IMPACT
Bitcoin is facing a potential massive correction, with analysts predicting a decline to test the 100-week SMA, which could lead to a significant drop in price.
The analysis by experts suggesting a correction for Bitcoin, coupled with the current downward trend and institutional sales, could lead to a short-term decrease in Bitcoin's price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Dogecoin's price decreased by 4.14%, and the short-term impact is expected to be negative, following the trend of the broader cryptocurrency market.
Dogecoin, while often influenced by separate factors such as social media and influencer endorsements, is still subject to the general market sentiment, which is currently bearish. This could result in a continued short-term negative impact on its price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Ethereum also saw a decline in its price, dropping by 4.34%, which may continue in the short term due to the overall bearish sentiment in the cryptocurrency market.
Ethereum's price is likely to be impacted by the same factors affecting Bitcoin, as the cryptocurrency market often moves in tandem. The current negative sentiment could lead to further short-term price declines for Ethereum.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Grayscale's GBTC has experienced over $3.4 billion in outflows since its conversion to a spot Bitcoin ETF, with FTX's bankruptcy estate selling a significant portion of its GBTC shares, exerting downward pressure on the fund.
The outflows from GBTC, especially due to the FTX bankruptcy estate's sales, are likely to continue exerting downward pressure on GBTC's price in the short term. The market's reaction to the conversion to a spot ETF and subsequent sales by FTX indicates a bearish outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100