Bitcoin falls below $39,000 for the first time since December.
Key Takeaways
- Bitcoin price fell to a six-week low of $38,785.
- Grayscale’s switch to a cash ETF led to significant outflows, raising concerns about the market’s ability to absorb.
- Despite these challenges, the spot ETF sector, including GBTC, remains robust, indicating mixed outlook for Bitcoin’s immediate future.
Bitcoin (BTC) is currently Grappling with critical tests of resilience Because the price dropped below $39,000.
This precarious position Influenced by many factorsBitcoin sales increased primarily due to the conversion of Grayscale Bitcoin Trust (GBTC) into a physical Bitcoin exchange-traded fund (ETF).
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According to data from BitDegree, the value of Bitcoin in the last 24 hours has been It fell nearly 5% to a six-week low of $38,785.This represents a period of uncertainty and sell-side pressure.
GBTC’s conversion to a spot ETF has contributed significantly to this trend.. On January 22, the trust reported an outflow totaling 19,250 BTC (equivalent to approximately $785 million).
Alex Thorn, head of research at Galaxy, estimated the leak to be about $700 million. These large withdrawals have raised concerns among market analysts and investors alike.
Bloomberg Intelligence ETF analyst Eric Balchunas said: Potential impacts were mentioned. This volume, especially in transactions with custodian Coinbase, is It’s underwhelming compared to other ETF players in the market..
Despite these difficulties, The new cash ETF sector is showing positive signs., net inflows are still being recorded. For example, GBTC still has over $20 billion in assets and its stock price is closely aligned with the BTC spot price, representing only a 0.27% discount as of January 19th.
Bitcoin’s struggle to maintain the $40,000 mark amid Grayscale’s ETF conversion and rising outflows marks a critical juncture for the cryptocurrency, with implications for both institutional and retail investors.
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