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Bitcoin experiences a decline as the Grayscale Bitcoin Trust ETF (GBTC) assets undergo a sell-off, with the trading volume decreasing by $2.8 billion within the initial six days. Additionally, BTC faces pressure from the strengthening performance of the U.S. economy.
Eric Balchunas, an Analyst at Bloomberg, indicated that the assets managed by nine spot Bitcoin ETFs have risen to nearly 95,300 BTC (~$3.96 billion) since their inception. The sell-off of GBTC’s managed assets persists, with a reduction of approximately $2.8 billion during the same timeframe, while around 552,000 BTC (~$22.9 billion) remains under the management of the Grayscale fund.
The asset sell-off from the largest spot Bitcoin ETF exerts significant pressure on Bitcoin’s price. BTC has reached the $40,000 threshold twice in recent days. Analysts suggest that a further decline in value may be likely.
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Rekt Capital analysts observed that Bitcoin’s price has fallen to the lower end of the weekly range, indicating a bearish trend. Concurrently, Joe McCann, Founder of Asymmetric, highlighted a notable decrease in Bitcoin’s trading volume. On-Chain Analyst Crypto Tony proposed that BTC prices might drop to around $38,000 prior to the halving event.
Another contributing factor to the downward pressure on prices is the rise of certain economic indicators in the United States. The U.S. Dollar Index (DXY), which measures the dollar’s performance against a selection of major foreign currencies, showed a peak increase of 2.71% compared to the local minimum recorded on December 27 of the previous year. This increase coincides with a rise in retail sales in the U.S. during December 2023 and a rebound in U.S. bond yields. Given these trends, the Fed may consider lowering interest rates in March, potentially diminishing demand for high-risk assets.
Following the anticipation of spot Bitcoin ETFs, BTC surged above the $47,000 mark, and the Fear and Greed Index entered the “extreme greed” territory. However, shortly after the introduction of these investment instruments, the initial excitement began to wane, leading to a decline in Bitcoin’s value.
Сообщение BTC Drops to $40,000 Amid GBTC Selling and Dollar Strengthening появились сначала на CoinsPaid Media.
