Bitcoin Dips to 7-Week Low, Market Analysts Predict Further Slump Amid ETF Shifts
Summary:
Bitcoin experienced a 7-week low, with continued sell pressure and an uninspiring 20% drop from January's high. Some market analysts are warning that this downward trend might persist. Key factors pressuring Bitcoin are shifting investors to newer Bitcoin exchange-traded funds and Grayscale Bitcoin Trust's liquidations. Despite the slump, Bitcoin whales have been gathering Bitcoin worth close to $800 million over the past month.
Bitcoin continues to experience a serious slump, plummeting to fresh lows of seven weeks; and market pundits are warning that this downward trend might persist. According to information obtained from TradingView and Cointelegraph Markets Pro, Bitcoin's price decidedly fell to $39,440, only being followed by a small lift.
Among the factors pressuring Bitcoin is the Grayscale Bitcoin Trust (GBTC), a significant Bitcoin investment fund, due to a switch of investors to new Bitcoin exchange-traded funds (ETFs). Bitcoin's uninspiring 20% drop from January's high has failed to encourage traders, with some forecasting additional losses as liquidations surge.
Arthur Hayes, the former chief of BitMEX, a cryptocurrency exchange, hinted at further falls on social media. Similarly, Keith Alan, who co-founded the trading platform Material Indicators, indicated that the bulls needed to gather some impetus at the current level of around $40,000, else a decline to $38,000 could be on the horizon.
However, according to data by Material Indicators, there is an increasing number of Bitcoin whales who have been amassing Bitcoin, with a total worth close to $800 million, in the past month, showing still-existing demand for Bitcoin.
Amid all this, the newly issued spot exchange-traded funds (ETFs) are witnessing a state of constant change. James Seyffart, an analyst at Bloomberg Intelligence, pointed out that GBTC sold Bitcoin worth $640 million on Jan. 22, nullifying earlier indications that sales were reducing. On the other hand, ETF structures, like the iShares Bitcoin Trust by BlackRock, saw an inflow of $272 million on the same day.
Lastly, a social media influencer in the crypto space, MartyParty, believes relief is on the way. They argued that ETF sales should start to stabilize as the upheaval caused by their introduction begins to settle to a more consistent upward trend.
This article does not offer investment advice or recommendations. As every investment and trading action carries risk, readers are advised to conduct an independent investigation when making a decision.
Published At
1/23/2024 10:25:00 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.