Alex Dovbnya
Bitcoin experienced a sharp decline today, hitting an intraday low of $39,494
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Bitcoin saw a significant decline today, falling to an intraday low of $39,494.65.
This latest drop saw the market cap fall to $784.8 billion while the 24-hour trading volume reached $30 billion.
After the last update, Bitcoin has recovered slightly and is at around $40,032.31. However, the 24-hour range suggests a turbulent time for the cryptocurrency as it fluctuated between $39,494.65 and $41,269.88.
Understanding the sell-off
The downward trend in Bitcoin value is largely due to significant outflows from Bitcoin exchange-traded funds (ETFs).
Notably, the Grayscale Bitcoin Trust (GBTC) saw a staggering $640 million exit in just one day, marking its largest outflow ever. The total amount withdrawn so far is around $3.45 billion.
James Seyffart, the leading NFT analyst, pointed out this trend in his social media post, highlighting the increasing speed of these outflows.
Additionally, analyst Holger Zschäepitz highlighted the waning enthusiasm for Bitcoin ETFs, which comes with a decline in the correlation between Bitcoin and technology stocks, which is currently at a low of 0.3 last week.
Bearish sentiment from market analysts
The recent bearish sentiment surrounding Bitcoin has drawn ominous posts from prominent naysayers.
Peter Schiff, a well-known Bitcoin critic, expressed his pessimistic stance at X, particularly focusing on the ProShares Bitcoin Strategy ETF. This ETF, which tracks Bitcoin futures, has seen a decline of over 50% in just over two years since its launch in October 2021. Schiff expects other ETFs to suffer the same fate.
Jim Cramer, another influential voice in the financial world, summed up the situation succinctly with a post: “Bitcoin is a tough sell,” after previously predicting that the flagship cryptocurrency would struggle to gain traction.
About the author
Alex Dovbnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience reporting on everything related to the emerging industry – from price analysis to blockchain disruption. Alex has written more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He is particularly interested in the regulatory trends around the globe that are shaping the future of digital assets. He can be contacted at [email protected].
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