Bitcoin Price Plunges Below $40,000, Down Nearly 20% From Post-ETF Launch Highs – Here’s How Low the BTC Bears Could Bury the Price
The Bitcoin (BTC) price just plunged below $40,000 for the first time since early December, taking its pullback from post-spot Bitcoin ETF approval highs above $49,000 to nearly 20%.
Having shed over 3.5% since the start of the day, the BTC price was last changing hands just above $40,000.
Reports that broke earlier on Monday alleged that FTX, which is currently going through bankruptcy proceedings and liquidating assets, sold as much as $1 billion of its Grayscale Bitcoin Trust (GBTC) holdings in wake of the approval of spot Bitcoin ETFs earlier in the month, explaining much of the outflows from the newly converted ETF.
GBTC has seen about $2 billion in outflows since converting to a spot ETF.
That compares to inflows of more than $4 billion to newly launched spot Bitcoin ETFs from BlackRock and competitors.
While net flows have been positive, Grayscale outflows have seemingly exceeded expectations, triggering nerves.
With FTX sales now assumed to be over, some Bitcoin bulls might be hoping that sell pressure abates.
But the Bitcoin market seems to disagree as BTC bears attempt to bury the price below $40,000.
The approval of spot Bitcoin ETFs in the US earlier this month was a historic moment for Bitcoin.
For the first time, investors in the US will be able to get direct exposure to movements in the Bitcoin price, without having to buy or take custody of any Bitcoin themselves.
The assumption is that this will unlock a wave of new demand from retail and institutional investors.
Big positive net inflows into newly launched spot Bitcoin ETFs has so far proven this thesis correct.
While new demand from ETF buyers is expected to be a long-term tailwind for the Bitcoin price, it hasn’t been enough to prevent a deflation following an
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