Bitcoin Hits Lowest Point Since December Amidst Mass Market Sales, Stirs Debate Over Future
Summary:
Bitcoin's value dropped to its lowest since early December post Wall Street's opening on January 23, sparking discontent over mass market sales. Data highlighted Bitcoin's struggle with institutional sell-offs and low demand, erasing nearly two months' gains. The Grayscale Bitcoin Trust (GBTC), despite offloading billions in Bitcoin this month, still manages over $20 billion in assets. Despite the grim situation, some, like Bloomberg Intelligence analyst Eric Balchunas, highlighted Bitcoin's 75% returns in 2023 as a cause for optimism.
Bitcoin's worth experienced a significant dip, hitting its most reduced mark since early December following the Wall Street opening on 23rd of January, leading to escalating discontent over mass selling in the market. According to data from Cointelegraph Markets Pro and TradingView, the BTC price activity steeply declined to $38,505 on Bitstamp.
At the moment, Bitcoin is barely getting back on its feet, grappling with an all-too-familiar situation of institutional sell-offs and low demand, which has effectively wiped out nearly two months' worth of gains. The spotlight now stands on Grayscale Bitcoin Trust (GBTC), an enormous investment entity that continues to manage over $20 billion in assets, notwithstanding the billions of Bitcoin dollars unloaded this month.
The 23rd of January saw an additional 15,200 BTC (equivalent to $590 million), previously tied to GBTC holdings, being moved to Coinbase according to data from crypto intelligence company Arkham. However, this quantity was comparatively less than the preceding day. With final figures yet to be verified, observers have maintained a sceptical stance.
Daan Crypto Trades shared his perspective, stating that the performance of the United States' new spot Bitcoin exchange-traded funds (ETFs) was assisting in counterbalancing the exits from GBTC. On the other hand, Adam Back, CEO of Bitcoin technology company Blockstream, argued that forced liquidations and FTX's sell-offs were contributing to the Bitcoin downturn.
Concerning spot liquidations, Bitcoin longs have continued to face a harsh day. CoinGlass data shows that the total longs lost during the two-day span through 23rd January amounted to a whopping $110 million. Nonetheless, optimists maintain a longer-term perspective, arguing that current adverse occurrences will not persistently pressure the market.
Eric Balchunas, a dedicated ETF analyst at Bloomberg Intelligence, managed to find the silver lining in Bitcoin's 2023 performance, which yielded 75% returns surpassing popular investments in stocks. He encouraged stakeholders to maintain a wider perspective to avoid unnecessary stress. However, it is essential to note that every investment and trading decision entails risks, and thorough research should be conducted before undertaking any decision.
Published At
1/23/2024 6:43:14 PM
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