Why Bitcoin Price Dropped Despite ETF Approval: Striking Statement from Analyst

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of 2024 Bitcoin While it was expected to be active for the cryptocurrency market, especially the crypto money market, expectations came true and the year started quite active. The process that started with the approval of the spot ETF was enough to fuel the excitement of investors.

As we reported as Koinfinans.com, while expectations were for the Bitcoin price to increase, this expectation was met with a peak of $49,102 in the first stage. The price recently recorded a yearly low of $40,236, with analysts and experts offering mixed predictions for the price’s direction.

Julio Moreno, head of research at CryptoQuant, predicted a counter-narrative that Bitcoin’s price drop was due to Grayscale’s GBTC selling BTC. offers.

Before converting from a trust to an ETF, Grayscale Bitcoin Trust (GBTC) was a real asset for equity investors in the United States. cryptocurrency It was one of their only options for exposure to Bitcoin price fluctuations without having to purchase the unit.

Although GBTC recorded significant outflows after converting to an ETF, some of these came from investors switching to lower-fee ETFs.

Moreno emphasized that while GBTC sold approximately 60,000 Bitcoins, other BTC ETFs netted approximately 72,000 tokens, thus offsetting the BTC sales from Grayscale’s GBTC.

Grayscale, who attributes the fluctuation in Bitcoin price to sales by holders who made profits after last year’s rise, thinks that the ETF approval may just be a “sell the news” event.

According to Glassnode, Bitcoin’s price decline may have been caused by both derivative leverage and spot profit taking. However, many different metrics indicate that a post-ETF “sell the news” event may have occurred.

While there may be other significant driving factors behind the mid-term volatility, both futures and options markets have seen a meaningful increase in open interest (OI) since mid-October, according to Glassnode. The fact that open positions are at their highest levels in recent years in both markets shows that the leverage ratio has increased and become a more dominant force in the markets.


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