As the digital currency landscape continues to evolve, Bitcoin (BTC) has recently seen a noteworthy dip, plunging below the critical $40,000 threshold. This movement has not gone unnoticed, with market specialists from Greeks.live reporting a surge in short-term panic orders in response.
The descent of BTC to sub-$40,000 levels in the late hours between January 22 and 23 has led to heightened bearish momentum, according to the latest insights from financial analysts. Despite this, the tug-of-war between buyers and sellers remains evenly matched, indicating an ongoing battle within the marketplace.
Bitcoin’s current trajectory is one of correction, following the launch of several Bitcoin spot ETFs in the United States. In the last 24 hours alone, the price of the leading cryptocurrency has seen a 3% reduction, settling around $39,970 at the time of analysis. Concurrently, a substantial spike in trading volume was observed, with a 113% increase, totaling an impressive $29.2 billion in trades.
Previously, Greeks.live has pointed out that the initial effects of the BTC spot ETFs have subsided. The market is now feeling the influence of Grayscale’s selling pressure juxtaposed with fresh investor purchases, primarily during ETF trading hours. Bloomberg’s James Seyffart has reported a significant $76 million net outflow from spot Bitcoin ETFs in a single day, with Grayscale’s fund experiencing the lion’s share of asset outflows amounting to $3.45 billion.
Despite the outflow, Grayscale’s CEO Michael Sonnenshein maintains a positive outlook for the company’s ETF offering. He cites the organization’s decade-long history, a diverse investor base, and the highest liquidity among spot Bitcoin ETFs as reasons for his optimism.
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