Inspired by Casey Rodarmor's Ordinals Protocol, the ORDI token fell over 14% to a new monthly low on January 23 as Bitcoin fell back to $39,000.
Bitcoin-focused cryptocurrency ORDI fell below $55 for the first time since December last year, thanks to a broad market downturn that appeared to be caused by short-term BTC ETF outflows.
Speculation suggests that ORDI's crash is due to Bitcoin (BTC) price action resulting from a sharp decline in the cryptocurrency markets and daily outflows from the Grayscale Spot Bitcoin ETF, the largest and most liquid BTC-focused fund was admitted to trading on January 10th.
ORDI cryptocurrency | Source: CoinMarketCap
This drop came hours after the largest crypto token fell below $40,000 less than two weeks after the US Securities and Exchange Commission (SEC) decision to allow spot BTC ETFs.
Outflows from Grayscale's ETF led to selling pressure on Bitcoin price as the asset manager needs to liquidate actual BTC to support redemptions and allow traders to book profits. According to crypto.news, Grayscale has divested over $2.1 billion worth of BTC and recorded $2 billion worth of exits from its funds since the SEC approval was announced.
About half of that was attributed to insolvent crypto exchange FTX, which recently dismissed a lawsuit against Grayscale and parent company Digital Currency Group.
During the same period, BTC fell by more than 20% and is down 10% this month as the token was trading for $39,300 at press time.
While Grayscale's ETF is currently the largest with a market cap of over $20 billion and a BTC portfolio of 558,280 Bitcoins, issuers from BlackRock to Franklin Templeton have each had their BTC holdings since the ETFs' official launch on January 11th elevated.
According to Arkham Intelligence, BlackRock, Bitwise, Fidelity and Franklin Templeton now have more than 80,000 BTC worth almost $5 billion.
UPDATE: The Great GBTC Gouge hit a record $640 million on Monday, the Nine did its best to make up for it but came up short with a profit of $553 million. ROLLING NET FLOWS are still healthy at +$1B, but the fight continues. The Nine now has a 20% stake over GBTC. The volume of new launches in the second week also remains very high pic.twitter.com/ng0BU8mi6L
— Eric Balchunas (@EricBalchunas) January 23, 2024
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.