{"id":35266,"date":"2024-01-19T11:52:54","date_gmt":"2024-01-19T15:52:54","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=35266"},"modified":"2024-01-19T11:52:54","modified_gmt":"2024-01-19T15:52:54","slug":"why-did-the-bitcoin-price-fall-below-41000","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2024\/01\/19\/why-did-the-bitcoin-price-fall-below-41000\/","title":{"rendered":"Why Did The Bitcoin Price Fall Below $41,000?"},"content":{"rendered":"

Bitcoin dropped below $41,000<\/a> in the last 24 hours before making a recovery to rise above that level once again. This has become the current reality<\/a> of the flagship crypto token\u2019s price, which has continued to decline since the Spot Bitcoin ETFs were approved<\/a>. This is surprising considering that these funds were projected<\/a> to help boost Bitcoin\u2019s price upon launch.\u00a0<\/p>\n

Why Bitcoin\u2019s Price Could Be Dipping<\/h2>\n

Bloomberg analyst James Seyffart<\/a> provided insight into what could be the reason for Bitcoin\u2019s declining price as he revealed<\/a> that Grayscale\u2019s GBTC<\/a> has experienced an outflow of $2.2 billion since its conversion to a Spot Bitcoin ETF. Crypto analytics platform Arkham Intelligence also revealed<\/a> that Grayscale had moved 9000 BTC from their wallets to Coinbase, suggesting an imminent sale.\u00a0<\/p>\n

A sell pressure of such magnitude would no doubt affect Bitcoin\u2019s price, and that seems to be a plausible explanation for why Bitcoin\u2019s price has declined as of late. The CEO of Jan3 and Bitcoiner, Samson Mow, also echoed similar sentiments as he mentioned<\/a> that the GBTC sell pressure was pushing prices down.\u00a0<\/p>\n

However, Mow believes that this trend \u201cwon\u2019t be a long drawn out process,\u201d as he predicts that many of GBTC\u2019s investors won\u2019t be able to offload their stocks because the \u201ctax hit is too big.\u201d JP Morgan will, however, beg to differ as a research report<\/a> by the bank estimates that up to $3 billion could exit from the GBTC fund with many investors looking to take profit.\u00a0<\/p>\n

Crypto analyst Ash Crypto also recently elaborated<\/a> on how profit-taking is one of the reasons that GBTC is seeing this significant amount of outflows. He explained that a lot of GBTC investors bought shares in the fund when it was trading at a 40% discount from Bitcoin<\/a>, and now they are exiting their positions since that discount is now at 0%.\u00a0<\/p>\n\n

Spot Bitcoin ETFs Are Actually Living Up To Hype<\/h2>\n

While Grayscale\u2019s GBTC continues to bleed, other Spot ETFs look to be living up to the hype, with there being an impressive demand for these funds. Nate Geraci<\/a>, the President of the ETF Store, revealed<\/a> that two (IBIT and FBTC<\/a>) out of the nine Spot ETFs (excluding GBTC) already hit<\/a> $1 billion in assets under management (AUM) just after five trading days.\u00a0<\/p>\n

Specifically, BlackRock\u2019s IBIT (iShares Bitcoin Trust) was the first to achieve this milestone<\/a> in just four trading days. Commenting on how impressive this was, Bloomberg analyst Eric Balchunas<\/a> noted that only two other ETFs ($GLD and $BITO) had done this before now, and none of those funds faced such competition as IBIT did on launch day.\u00a0\u00a0<\/p>\n

The demand for Spot ETFs is evidently there, seeing that two spot Bitcoin ETFs have already achieved a record that was held by only two other ETFs before now.<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Bitcoin dropped below $41,000<\/a> in the last 24 hours before making a recovery to rise above that level once again. This has become the current reality<\/a> of the flagship crypto token\u2019s price, which has continued to decline since the Spot Bitcoin ETFs were approved<\/a>. This is surprising considering that these funds were projected<\/a> to help boost Bitcoin\u2019s price upon launch.\u00a0<\/p>\n

Why Bitcoin\u2019s Price Could Be Dipping<\/h2>\n

Bloomberg analyst James Seyffart<\/a> provided insight into what could be the reason for Bitcoin\u2019s declining price as he revealed<\/a> that Grayscale\u2019s GBTC<\/a> has experienced an outflow of $2.2 billion since its conversion to a Spot Bitcoin ETF. Crypto analytics platform Arkham Intelligence also revealed<\/a> that Grayscale had moved 9000 BTC from their wallets to Coinbase, suggesting an imminent sale.\u00a0<\/p>\n

A sell pressure of such magnitude would no doubt affect Bitcoin\u2019s price, and that seems to be a plausible explanation for why Bitcoin\u2019s price has declined as of late. The CEO of Jan3 and Bitcoiner, Samson Mow, also echoed similar sentiments as he mentioned<\/a> that the GBTC sell pressure was pushing prices down.\u00a0<\/p>\n

However, Mow believes that this trend \u201cwon\u2019t be a long drawn out process,\u201d as he predicts that many of GBTC\u2019s investors won\u2019t be able to offload their stocks because the \u201ctax hit is too big.\u201d JP Morgan will, however, beg to differ as a research report<\/a> by the bank estimates that up to $3 billion could exit from the GBTC fund with many investors looking to take profit.\u00a0<\/p>\n

Crypto analyst Ash Crypto also recently elaborated<\/a> on how profit-taking is one of the reasons that GBTC is seeing this significant amount of outflows. He explained that a lot of GBTC investors bought shares in the fund when it was trading at a 40% discount from Bitcoin<\/a>, and now they are exiting their positions since that discount is now at 0%.\u00a0<\/p>\n

Spot Bitcoin ETFs Are Actually Living Up To Hype<\/h2>\n

While Grayscale\u2019s GBTC continues to bleed, other Spot ETFs look to be living up to the hype, with there being an impressive demand for these funds. Nate Geraci<\/a>, the President of the ETF Store, revealed<\/a> that two (IBIT and FBTC<\/a>) out of the nine Spot ETFs (excluding GBTC) already hit<\/a> $1 billion in assets under management (AUM) just after five trading days.\u00a0<\/p>\n

Specifically, BlackRock\u2019s IBIT (iShares Bitcoin Trust) was the first to achieve this milestone<\/a> in just four trading days. Commenting on how impressive this was, Bloomberg analyst Eric Balchunas<\/a> noted that only two other ETFs ($GLD and $BITO) had done this before now, and none of those funds faced such competition as IBIT did on launch day.\u00a0\u00a0<\/p>\n

The demand for Spot ETFs is evidently there, seeing that two spot Bitcoin ETFs have already achieved a record that was held by only two other ETFs before now.<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-35266","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35266","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=35266"}],"version-history":[{"count":1,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35266\/revisions"}],"predecessor-version":[{"id":35270,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/35266\/revisions\/35270"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=35266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=35266"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=35266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}