The price of Bitcoin (BTC) is being affected by two trends, according to data from IntoTheBlock

Vladislav Sopov

Last week, the price of Bitcoin (BTC) fell to a seven-week low of $38,740; Here's what's pushing the orange coin down

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Both Bitcoin (BTC) and Ethereum (ETH) are seeing aggregate network fees decrease due to decreasing volatility. As Bitcoin (BTC) continues to flow to exchanges, Ethereum (ETH) reserves have begun to leave CEXes. Is the crypto correction nearing its end?

According to IntoTheBlock, the price of Bitcoin (BTC) is falling due to GBTC FUD and institutions taking profits

The price correction of Bitcoin (BTC), the largest cryptocurrency, is caused by the FUD about Grayscale's mass selling and profit-taking initiated by the largest players. Top research platform IntoTheBlock made such statements in its recent On-Chain Insights report.

Based on its tracking mechanisms, IntoTheBlock confirmed an outflow of $4.3 billion from the Grayscale Bitcoin Trust (GBTC). Technically, Grayscale's GBTC, which had been at a discount to the company's Bitcoin (BTC) holdings for two years, has been converted into an ETF. This led to huge outflows that contributed to the BTC price crash.

Even though this catalyst comes with a $1 billion outflow from the FTX holdings portfolio, it should not be overstated. Despite these negative processes, Bitcoin ETFs recorded a significant net inflow of $820 million, indicating solid interest from large buyers.

According to the data, addresses holding over 1,000 BTC each are buying en masse. They increased their holdings throughout 2023, but in January this process accelerated.

At the same time, large hedge funds decided to take profits, which is also an important catalyst for declining prices. Their activity drove the price to new local highs in the fourth quarter of 2023, but now the situation is the opposite:

As the ETF approval window began, we saw the futures premium quickly turn into a discount, indicating that companies were starting to take profits

At press time, Bitcoin (BTC) is changing hands at $41,715; The largest cryptocurrency rallied nearly 4% in the last 24 hours.

Are BTC price negative catalysts losing steam?

However, there has been some positive news for Bitcoin (BTC) in the last few days. According to IntoTheBlock, GBTC outflows have also slowed over the past two days.

Additionally, the Chinese central bank announced its willingness to pump $140 billion into its financial system, which could be another catalyst for the rise in crypto capitalization.

As U.Today reported yesterday, Marex Solutions digital assets expert Ilan Solot said that “the worst is over” for crypto as GBTC’s bearish narrative failed to push Bitcoin (BTC) price lower.

About the author

Vladislav Sopov

Blockchain analyst and author with a scientific background. 6+ years in IT analytics, 3+ years in blockchain.

Participation in independent analysis and start-ups (Swap.online, Monoreto, Attic Lab etc.)

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