The weakness of bitcoin since the approval of cash exchange-traded funds (ETF) on January 10 is surprising much of the market.
The cryptocurrencies They fall up to 9% and Bitcoin threatens to break a key support this Tuesday, January 23. Bitcoin (BTC) lost $40,000 and now stands at $38,000. For its part, Ethereum (ETH) loses 6.6% to US$2,200. The rest of the cryptocurrencies operate with falls led by Solana (-8.9%), Dogecoin (-7.2%), Cardano (-6.6%) and Ethereum (-6.6%).
The weakness of bitcoin since the approval of the exchange traded funds (ETF, for its acronym in English) in cash on January 10 is surprising a good part of the market. In these almost two weeks, the king crypto asset has lost close to 20% since the intraday highs reached on January 11, when it was on the verge of exceeding $49,000. For his part, the ETH, which had done considerably better in the following days, dropped around 15%.
Bitcoin: what are the causes of the falls?
The feeling of the market is bittersweet. Bloomberg ETF analyst Eric Balchunas points out thats net inflows of space exceed 1.2 billion dollars in the 6 first days of listing, with the so-called ‘Big Nine’ managing to raise more than 4 billion dollars and raising their bitcoin holdings to more than 95,000; By assets under management (AUM), bitcoin holdings exceed 3.7 billion dollars at current market prices.
However, these figures must be balanced with the exit of billions of dollars from the product Grayscale GBTCwhose outflows have exceeded $2.8 billion in the first 6 days of trading as investors have shifted their investments to funds with lower management costs or have taken profits after the stock’s discount has narrowed to February 2021 lows. In addition to outflows into GBTC, money has flowed out of existing bitcoin spot listed products in Europe and Canada, as well as Futures-based ETFs like ProShares (BITO).
On the other hand, experts highlight that a good part of the sales observed in GBTC have come from FTX. Specifically, the ravine crypto exchange has gotten rid of 22 million shares of the Grayscale exchange-traded fund, which had a value close to $1 billion. It is worth remembering that the bankruptcy courts have authorized the company’s liquidation plans, which put a company under great pressure. digital asset series during last fall. Still, analysts note that now that FTX appears to have finished liquidating its holdings in this space, the pressure could ease.
Bitcoin: What can happen to the price?
Technically, bitcoin lost the support of 39,290 points. In these prices is the uncovered bullish gap that was left at the beginning of December. “Its behavior at this price level is very important. If it loses it, it would confirm the beginning of a correction that could extend up to the level of $35,000prices where the average of 200 sessions is found,” says César Nuez, technical analyst at Bolsamanía.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
